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Popular Word Problems >

An investor places 20 000 in an account earning 4%p.a. simple interest.Find the value of the investment after 5 years.

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Solution

implicit derivative investorplaces20000inanaccountearning4%p.a.simpleinterest.Findthevalueoftheinvestmentafter5years.

Solution

Amount:24000
Solution steps
Translate the problem into an equation:A=20000(1+0.04⋅5)
20000(1+0.04⋅5)=24000
Amount:24000

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