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?

Solution

Solution

Amount : 625

Solution steps

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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