Tyler's savings account pays a simple annual interest rate of 3.25%. Suppose he deposits 5,000 in the account and makes no additional deposits or withdrawals for 3 years. What will the total value of the account be after 3 years?

Solution

Tyler's savings account pays a simple annual interest rate of 3.25%. Suppose he deposits 5, 000 in the account and makes no additional deposits or withdrawals for 3 years. What will the total value of the account be after 3 years?

Solution

Amount : 5487.5

Solution steps

Translate the problem into an equation:

A = 5000 (1 + 0.0325 \cdot 3)

5000 (1 + 0.0325 \cdot 3) = 5487.5

Amount : 5487.5

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