Question

Thomas invests $123 in an account that pays 4 percent simple interest. How much money will Thomas have at the end of 6 years

Answer 1

Answer:

$152.50

Explanation:

Simple interest = Principal*Interest rate*Time period

Simple interest = $123*4%*6

Simple interest  = $29.52

Future value = Principal + Simple interest

Future value = $123 + $29.52

Future value = $152.50

So, Thomas will have $152.50 at the end of 6 years.