Tyler's savings account pays a simple annual interest rate of 3.25%. Suppose he deposits 5,000 in the account and makes no additional deposits or withdrawals for 3 years. What will the total value of the account be after 3 years?

Solución

T y l e r^{'} s s a v in g s a cco u n t p a ys a s im pl e ann u a l in t eres t r a t e o f 3.25%. S u pp ose h e d e p os i t s 5, 000 in t h e a cco u n t an d mak es n o a dd i t i o na l d e p os i t s or w i t h d r a w a l s f or 3 ye a rs . Wha t w i ll t h e t o t a l v a l u e o f t h e a cco u n t b e a f t er 3 ye a rs ?

Amount : 5487.5

Pasos de solución

Translate the problem into an equation:

A = 5000 (1 + 0.0325 \cdot 3)

5000 (1 + 0.0325 \cdot 3) = 5487.5

Amount : 5487.5