Taylor invests $6000 at 5% simple interest for 4 years. How much is in the account at the end of the 4-year period?

Question

help please??

Answer 1

The formula that is applicable, which you should have and which you should memorize, is A = P(1+r)^t

for accumulated value A starting with principal P, compounded at year's end for t years, with simple interest rate r.

Rate r must be converted to decimal, in this case it's 0.05 because 5% means 5 divided by 100.

 

So whip out the calculator and do this calculation with t=4, P = 6000.