Answered

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Lee put $5,000 into a stock market index mutual fund that grew at an average of 6.5% per year for 10 years. without any added deposits or withdrawals, about how much is in lee's mutual fund account after only 8 years, if you ignore compounding?

Sagot :

The amount in lee's mutual fund account after 8 years will be $7600

Given: Principal amount (P) = $5000,

Time (t) = 10 years,

Rate of interest (r) = 6.5% per year

To find: lee's mutual fund account after only 8 years

We know that Simple interest (SI) is given by:

[tex]S.I = \frac{PTR}{100}[/tex].......(1)

So, by using equation (1) money (P') in a mutual fund account after 8 years will be

[tex]P'=P+\frac{PTR}{100}[/tex]

[tex]=5000+\frac{5000*6.5*8}{100}[/tex]

[tex]= 5000+50*6.5*8[/tex]

= 5000+2600

= 7600

Hence, the amount in lee's mutual fund account after 8 years will be $7600

Learn more about Simple Interest here https://brainly.com/question/25793394

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