Question

Maya has savings of $30,000. She invests in a bond mutual fund that pays 5% interest each year. Ignoring compounding, what are Maya's total savings after 15 years?

Answer 1

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$30000\\ r=rate\to 5\%\to (5)/(100)\dotfill &0.05\\ t=years\dotfill &15 \end{cases} \\\\\\ A = 30000[1+(0.05)(15)] \implies A = 52500`