Question

trevon invested 1500 in an account with an interest rate of 4.25%. If he plans to retire in 18 and 1/2 years, how much total will be in his account?

Answer 1

assuming simple interest rate with an APR, then,


`\bf ~~~~~~ \textit{Simple Interest Earned Amount}\\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to& \$1500\\ r=rate\to 4.25\%\to (4.25)/(100)\to &0.0425\\ t=years\to 18(1)/(2)\to &18.5 \end{cases} \\\\\\ A=1500(1+0.0425\cdot 18.5)\implies A=1500(1.78625)`