Question

Camden's grandparents open a savings account for him on his fifth birthday they deposited five grand into account that had a simple interest rate of 6% Camden leave his money in the account for 18 years what formula would you use to solve this problem

Answer 1

`Amount = Principal +(PrincipalX RateXTime)/(100)`

Explanation:

The formula that would be used to solve this problem is given below:

Amount = Principal + Simple Interest

`Simple \: Interest =(PrincipalX RateXTime)/(100)`

Where:

Principal = this is the amount kept/invested in the bank.

Rate = This is the Percentage(as a fraction of 100) at which Interest will be paid

Time=The duration for which the money will be saved in years.

Therefore, from the given information:

Principal=$5000

Simple interest rate = 6%

Time = 18 years

`Amount = Principal +(PrincipalX RateXTime)/(100)`

`Amount = 5000 +(5000X 6X18)/(100)\\=5000+5400\\=\$10,400`