Question

Hong deposits $4000 into an account that pays simple interest at an annual rate of 5%. He does not make any more deposits. He makes no withdrawals until the end of 6 years when he withdraws all the money.

Answer 1

Simple interest formula-

Amount Received = Principle*[1 + Rate.(Time)]

A= 4000*[1+ 5 (6)]

A= 4000*(1+30)

A= 4000*31

A= $124000

Final Answer - $124000