Gerhard deposited $5600 into a savings account that earns 4.5% simple interest each year calculated annually. What is the future value of Gerhard's account after 12 years?

1 Answer
Dec 1, 2017

Future value after #12# years is # $8624.00#

Explanation:

Let #A,P,I, r ,t# be future value ,principal , interest earned ,

rate of simple interest and time in years respectively.

Interest earned #I=P*r/100*t = 5600*4.5/100*12=$3024#

Future value after #12# years is

# A=P+I=5600+3024=$8624.00# [Ans]