Question

Jason deposits $5,000 in a bank account that will pay him 4% simple interest annually. If Jason deposits no more than the initial 5,000 , how much money will be in the account at the end of 5 years ?

Answer 1

F=I(1+rt), F=final amount, I=initial amount, r=rate, t=time

Here I=$5000, r=(4/100)=0.04 so

F=$5000(1+0.04t) so after 5 years...

F=$5000(1+0.2)

F=$6000