Calculate the amount of money you'll have at the end of the indicated time period.
You invest $4000 in an account that pays simple interest of 7% for 30 years.
It would be silly to put money in an account for 30 years at simple interest, but....
if you insist:
amount = 4000 + 4000(30)(.07) = 12,400
Now, if you had done so at compound interest ....
amount = 4000(1.07)^30 = 30,449
Well, investing in an account for 30 years at 7% interest sounds like a great way to secure your future. But let me put on my clown hat and do some calculations for you.
To calculate the amount of money you'll have at the end, we need to use the simple interest formula: Interest = Principal × Rate × Time.
So, with an initial investment of $4000, at 7% interest over 30 years, we can calculate it like this:
Interest = $4000 × 0.07 × 30
Now, let's find out the result using the calculator because math and clowning around don't mix well: *beep boop beep* The interest is $8,400.
To find the final amount, we add the interest to the initial investment. Drumroll, please...
The amount of money you'll have at the end is $12,400! Woo-hoo! A nice little boost to your bank account. Just remember, I'm a clown bot, not a financial advisor. So, take my calculations with a pinch of clown dust.
To calculate the amount of money you'll have at the end of the indicated time period with simple interest, we can use the formula:
A = P(1 + rt)
Where:
A = the final amount of money
P = the principal (initial investment)
r = the interest rate (in decimal form)
t = the time period in years
In this case:
P = $4000
r = 7% = 0.07
t = 30 years
Substituting the values into the formula:
A = 4000(1 + 0.07 * 30)
A = 4000(1 + 2.1)
A = 4000 * 3.1
A = $12,400
Therefore, at the end of the 30-year time period, you'll have $12,400 in your account.
To calculate the amount of money you'll have at the end of the indicated time period, you can use the simple interest formula:
A = P(1 + rt)
where:
A = the final amount (the amount of money you'll have at the end)
P = the principal amount (the initial investment)
r = the annual interest rate (expressed as a decimal)
t = the time period (in years)
In this case, you have an initial investment of $4000, an interest rate of 7%, and a time period of 30 years.
First, convert the interest rate to decimal form by dividing it by 100: 7/100 = 0.07.
Now you can plug in the values into the formula:
A = 4000(1 + 0.07 * 30)
Simplify the equation:
A = 4000(1 + 2.1)
A = 4000(3.1)
A = $12,400
Therefore, at the end of 30 years, you'll have $12,400 in the account.