Answered

Westonci.ca is the ultimate Q&A platform, offering detailed and reliable answers from a knowledgeable community. Discover a wealth of knowledge from experts across different disciplines on our comprehensive Q&A platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

Sergio is creating a college fund for his son Diego, who is now 4 years old. Sergio put $1600 in a CD that will earn 8.25% simple interest. How much will be in the account when Diego turns 18?

Sagot :

well, Diego is 4 now, so by his 18th birthday that'll be 14 years later.

[tex]~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$1600\\ r=rate\to 8.25\%\to \frac{8.25}{100}\dotfill &0.0825\\ t=years\dotfill &14 \end{cases} \\\\\\ A=1600[1+(0.0825)(14)]\implies A=1600(2.155)\implies A=3448[/tex]

Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.