Jason deposits $5,000 in a bank account that will pay him 4% simple interest annually. If Jason deposits no more than the initial 5,000, how much money will be in the account at the end of 5 years?

Question

Mathematics

Vaughn Ballard

26 November, 22:24

Jason deposits $5,000 in a bank account that will pay him 4% simple interest annually. If Jason deposits no more than the initial 5,000, how much money will be in the account at the end of 5 years?

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Adison Parsons · Answer 1

F=I (1+rt), F=final amount, I=initial amount, r=rate, t=time

Here I=$5000, r = (4/100) = 0.04 so

F=$5000 (1+0.04t) so after 5 years ...

F=$5000 (1+0.2)

F=$6000