Question

mrs baxter deposits $2000 in an account that earns 5% simple interest.how much is mrs. baxters investment worth after 8 years?

Answer 1

Answer:

$\ 2,800$

Step-by-step explanation:

we know that

The simple interest formula is equal to

$A=P(1+rt)$

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

$t=8\ years\\ P=\ 2,000\\r=5\%=5/100=0.05$

substitute in the formula above

$A=2,000(1+0.05*8)$

$A=2,000(1.4)$

$A=\ 2,800$