Question

A business invests $25,000 in an account that earns 5.1% simple interest annually.

What is the value of the account after 4 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 & \$25000\\ r=rate\to 5.1\%\to (5.1)/(100)\dotfill &0.051\\ t=years\dotfill &4 \end{cases} \\\\\\ A = 25000[1+(0.051)(4)] \implies A=25000(1.204)\implies A = 30100`