At the end of 28 years, there will be 22,083.2 dollars in the account.
Step-by-step explanation:
Step 1; First we must calculate how much interest there is in total over 28 years. The annual interest rate is 8.25% i.e. 8.25% of 6,700 dollars which equals 552.75 dollars. As the years' pass, more and more will be put into the account due to interest. After 28 years, there will be an interest of 229.6% (8.25% per year * 28 years)of the initial amount.
Step 2; We must find the money due to interest and add it with the money that was put in initially. The interest amount is 2.296 times the 6,700 dollars which was put in. The interest equals 15,383.2 dollars. With this, the initial 6,700 dollars is added which comes to a total of 22,083.2 dollars
This question is based on the simple interest. Therefore, 22,083.2 dollars will be in the account after 28 years, to the nearest cent.
Given:
6700 dollars is placed in an account with an annual interest rate of 8.25%.
We need to determined the dollars in the account after 28 years, to the nearest cent.
According to the question,
First, we need to calculate the interest there is in total over 28 years.
It is given that, annual interest rate is 8.25% i.e. 8.25% of 6,700 dollars,
In mathematically expressed as,
[tex]\dfrac{8.25}{100} \times \, 6700 = 552.75 \, dollars[/tex]
It is given that, annual interest rate is 8.25%. Now, calculating the interest after 28 years,
[tex]\dfrac{8.25}{100} \times \, 28= 229.6 \,\%[/tex]
Thus,there will be an interest of 229.6% of the initial amount.
Now, we have to find the money due to interest and add it with the money that was put in initially.
The interest amount is 2.296 times of the 6,700 dollars which was put in.
[tex]2.296 \times 6700 = 15383.2[/tex]
The interest equals to 15,383.2 dollars.
Therefore,the initial 6,700 dollars is added which comes to a total of 22,083.2 dollars.
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