Tom opens a bank account and makes an initial deposit of $500. The banker tells Tom that he is going to receive

an annual rate of 6% on his investment. Find the bank balance assuming Tom leaves the account untouched for 15

years.

Question

Mathematics

Kaiden Turner

11 November, 13:08

Tom opens a bank account and makes an initial deposit of $500. The banker tells Tom that he is going to receive

an annual rate of 6% on his investment. Find the bank balance assuming Tom leaves the account untouched for 15

years.

+2

Answers (1)

Know the Answer?

Kylan Gibson · Answer 1

Bank balance after 15 years is $950

Step-by-step explanation:

Step 1: Find the simple interest on the principal amount using the formula SI = PRT/100 where Principal (P) = $500, Rate of Interest (R) = 6% and Time (T) = 15 years

⇒ SI = 500 * 6 * 15/100 = $450

Step 2: Find total amount using the formula Amount = P + SI

⇒ Amount = 500 + 450 = $950

Tom opens a bank account and makes an initial deposit of $500. The banker tells Tom that he is going to receivean annual rate of 6% on his investment. Find the bank balance assuming Tom leaves the account untouched for 15years.

Tom opens a bank account and makes an initial deposit of $500. The banker tells Tom that he is going to receive

an annual rate of 6% on his investment. Find the bank balance assuming Tom leaves the account untouched for 15

years.