Question

You have invested $2000 at 3.75% annual interest.
How much money do you have after 20 years?

Answer 1

• $3500

Explanation:

Let's use PRT/100 to see what will be the total amount.

• Total amount = Interest + Principle

Solution:

• PRT/100 = Interest
• => 2000 x 3.75 x 20 years/100
• => 20 x 3.75 x 20 = Interest
• => 2 x 2 x 375 = Interest
• => 4 x 375 = Interest
• => 1500 = Interest
• => Total amount = 1500 + 2000
• => Total amount = $3500

Hence, after 20 years, the amount earned is $3500.