Question

3. Andrea wants to deposit money into a bank account that earns 2.5% simple interest. Use the formula to find the amount of money that she should deposit so that she earns $2500 after 4.5 years. Show and explain your work.

Answer 1

A = P(1 + rt)

Answer 2

First, converting R percent to r a decimal
r = R/100 = 2.5%/100 = 0.025 per year,
then, solving our equation

A = 2500(1 + (0.025 × 4.5)) = 2781.25
A = $ 2,781.25

The total amount accrued, principal plus interest,
from simple interest on a principal of $ 2,500.00
at a rate of 2.5% per year
for 4.5 years is $ 2,781.25.

Answer 3

thank you.