Question

A new bank customer with $4,500 wants to open a money market account. The bank is offering a simple
rate of 1.4%
a. How much interest will the customer earn in 30 years?
b. What will the account balance be after 30 years?
a. The customer will earn $ in interest.
b. After 30 years, the account balance will be $0.

Answer 1

Answer:

a) interest in 30 years will be $1,890

b) account balance in 30 years will be $6,390

Step-by-step explanation:

Interest = Principal · Rate · Time

            = 4500 (.014)(30)

            = 1,890

Total Amount = Interest + Principal

                       = 1,890 + 4,500