7900 dollars is placed in an account with an annual interest rate of 5.5%. How much will be in the account after 11 years?
Accepted Solution
A:
Answer:[tex]\$12,679.50[/tex]
Step-by-step explanation:we know that
The simple interest formula is equal to
[tex]A=P(1+rt)[/tex]
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
[tex]t=11\ years\\ P=\$7,900\\ A=?\\r=5.5\%=5.5/100=0.055[/tex]
substitute in the formula above
[tex]A=7,900(1+0.055*11)[/tex]
[tex]A=7,900(1.605)[/tex]
[tex]A=\$12,679.50[/tex]