Question

Samantha invests $11,000 at 6% simple interest for 25 years.

Round your answers to the nearest cent.

Answer 1

$27,500.00

Explanation:

First, converting R percent to r a decimal

r = R/100 = 6%/100 = 0.06 per year.

Solving our equation:

A = 11000(1 + (0.06 × 25)) = 27500

A = $27,500.00

The total amount accrued, principal plus interest, from simple interest on a principal of $11,000.00 at a rate of 6% per year for 25 years is $27,500.00.