Question

If a person invests $100 at 4% annual interest, find the approximate value of
the investment at the end of 10 years.

Answer 1

Answer:

$140

General Formulas and Concepts:

Pre-Algebra

Order of Operations: BPEMDAS

1. Brackets
2. Parenthesis
3. Exponents
4. Multiplication
5. Division
6. Addition
7. Subtraction

• Left to Right

Algebra I

Simple Interest Rate Formula: $\displaystyle A = P(1 + rt)$

• P is principle amount
• r is rate
• t is time

Step-by-step explanation:

Step 1: Define

Identify variables

P = 100

r = 4% = 0.04

t = 10

Step 2: Find Interest

1. Substitute in variables [Simple Interest Rate Formula]:                                 A = 100(1 + 0.04 · 10)
2. (Parenthesis) Multiply:                                                                                      A = 100(1 + 0.4)
3. (Parenthesis) Add:                                                                                            A = 100(1.4)
4. Multiply:                                                                                                             A = 140