finite math

Question

Find the simple interest on a $400 investment made for 5 years at an interest rate of 7%/year. What is the accumulated amount?

Answer 1

A = p(1 + r)^t, where A = accumulated amount, p = principal, r = rate, t = time

 

A = 400(1 + 0.07)⁵

A = 400(1.07)⁵

A ≈ 400(1.40)

A ≈ 561.00

 

The accumulated amount is $561.00