Problema Solution
A deposit of $2,500 grew to $3,325 after 6 years. What is the final value of a deposit of $7,500 at the same interest rate for the same period of time?
Answer provided by our tutors
We will assume the we are talking about simple interest.
r = interest rate
t = 6 years the period of time
P = $2,500
A = $3,325
A = P(1 + rt)
r = (A - P)/(Pt)
r = (3,325 - 2,500)/(2,500*6)
r = 0.055
Now we will find A, the future value, for P = $7,500, interest rate r = 0.055 or 5.5% and time period t = 6 years:
A = P(1 + rt)
A = 7,500(1 + 0.055*6)
A = $9,975
The final value of a deposit of $7,500 at the same interest rate for the same period of time is $9,975.