Thinking Mathematically (6th Edition)

Published by Pearson
ISBN 10: 0321867327
ISBN 13: 978-0-32186-732-2

Chapter 8 - Personal Finance - 8.3 Simple Interest - Exercise Set 8.3: 11

Answer

$A=\$38,350$

Work Step by Step

The formula for the future value $A$ is: $A=P(1+rt)$ where P = principal amount borrowed r = interest rate per year t = time in years Use the formula above to obtain: $A=\$26000(1+9.5\%\cdot 5) \\A=\$26000(1+0.095\cdot 5) \\A=\$26000(1+0.475) \\A=\$26000(1.475) \\A=\$38,350$
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