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Popular Word Problems >

If Josh invests 500 in a 5-year fixed interest savings bond that pays 5% per annum, how much will his entire investment be worth at the end of the term?

Solução

I f J os h in v es t s 500 in a 5 - ye a r f i x e d in t eres t s a v in g s b o n d t ha t p a ys 5% p er ann u m, h o w m u c h w i ll hi s e n t i re in v es t m e n t b e w or t h a t t h e e n d o f t h e t er m ?

Solução

Amount : 625

Passos da solução

Translate the problem into an equation:

A = 500 (1 + 0.05 \cdot 5)

500 (1 + 0.05 \cdot 5) = 625

Amount : 625

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