Questions: Calculate the amount of money you'll have at the end of the indicated time period, assuming that you earn simple interest. You deposit 3200 in an account with an annual interest of 5.5% for 10 years. The amount of money you'll have at the end of 10 years is .

Calculate the amount of money you'll have at the end of the indicated time period, assuming that you earn simple interest.

You deposit 3200 in an account with an annual interest of 5.5% for 10 years.

The amount of money you'll have at the end of 10 years is .

Transcript text: Calculate the amount of money you'll have at the end of the indicated time period, assuming that you earn simple interest. You deposit $\$ 3200$ in an account with an annual interest of $5.5 \%$ for 10 years. The amount of money you'll have at the end of 10 years is $\$$ $\square$ (Type an integer or a decimal.)

Solution

Solution Steps

Step 1: Convert the Annual Interest Rate from Percentage to Decimal

To convert the annual interest rate from a percentage to a decimal, divide by 100:

\[ r = \frac{r\%}{100} = \frac{5.5}{100} = 0.055 \]

Step 2: Calculate the Final Amount Using the Simple Interest Formula

Using the formula for simple interest:

\[ A = P + (P \times r \times t) \] Substitute the values:

\[ A = 3200 + (3200 \times 0.055 \times 10) \]

Step 3: Round the Final Amount

Round the final amount, \(A\), to 2 decimal places:

\[ A = 4960 \]

Final Answer:

The amount of money at the end of 10 years, with an initial deposit of $3200 and an annual interest rate of 5.5%, is $4960.

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