Problema Solution
You deposit your graduation money of $2500 in a bank for four years at 5.5% interest. How much interest will you make? How much money will you have in the bank after four years?
Answer provided by our tutors
P = $2500 is the principal
r = 0.053 or 5.3% is the annual interest rate
t = 4 years
A = the future or maturity value
I = the interest
I = P*r*t
I = 2500*0.053*4
I = $530
i will make $530 interest.
A = P + I
A = 2500 + 530
A = $3030
after 4 years there will be $3030 in the bank.