Answer:
23,200
Step-by-step explanation:
Use the formula for the amount after simple interest:
A = P(1 + rt)
“A” is the (final) amount.
“P” is the principal, or starting amount.
“r” is the interest rate in decimal form.
“t” is time, usually in years.
We are given the following:
P = 16,000
r = 9% = 0.09
t = 5
We are solving for “A”.
Substitute values for “P”, “r” and “t” into the formula to find “A”.
A = P(1 + rt)
A = 16,000(1 + (0.09)(5))
Simplify brackets first
A = 16,000(1 + 0.45)
A = 16,000(1.45)
A = 23,200
Therefore, the total amount in the account at the end of the five year period is 23,200.