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 5.2% for 5 years. The amount of money you'll have at the end of 5 years is $ (Type an integer or a decimal.)
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 5.2% for 5 years. The amount of money you'll have at the end of 5 years is $ (Type an integer or a decimal.)
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Question
![**Calculate Simple Interest Accumulation**
To determine the amount of money you'll have at the end of a specified time period with simple interest, use the following scenario:
**Scenario:**
You deposit $3200 in an account with an annual interest rate of 5.2% for 5 years.
**Instructions:**
1. Identify the initial deposit (Principal, P): $3200
2. Annual interest rate (R): 5.2%
3. Time period in years (T): 5 years
Using the Simple Interest formula:
\[ \text{Simple Interest} (SI) = P \times R \times T \]
The total amount (A) at the end of the investment period will then be:
\[ A = P + SI \]
**Calculation:**
1. Convert the interest rate from a percentage to a decimal: 5.2% = 0.052
2. Calculate the simple interest:
\[ SI = 3200 \times 0.052 \times 5 \]
\[ SI = 3200 \times 0.26 \]
\[ SI = 832 \]
3. Calculate the total amount:
\[ A = 3200 + 832 \]
\[ A = 4032 \]
**Result:**
The amount of money you'll have at the end of 5 years is **$4032**.
(Type an integer or a decimal in the box provided).
**Note:** This example highlights the formula for calculating simple interest and shows the steps to find the accumulated amount after the given time period.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F28a40af9-2b45-41f6-af30-4533882ab139%2F7876b251-793a-4d36-97f2-361165c9afce%2F0olvdp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Calculate Simple Interest Accumulation**
To determine the amount of money you'll have at the end of a specified time period with simple interest, use the following scenario:
**Scenario:**
You deposit $3200 in an account with an annual interest rate of 5.2% for 5 years.
**Instructions:**
1. Identify the initial deposit (Principal, P): $3200
2. Annual interest rate (R): 5.2%
3. Time period in years (T): 5 years
Using the Simple Interest formula:
\[ \text{Simple Interest} (SI) = P \times R \times T \]
The total amount (A) at the end of the investment period will then be:
\[ A = P + SI \]
**Calculation:**
1. Convert the interest rate from a percentage to a decimal: 5.2% = 0.052
2. Calculate the simple interest:
\[ SI = 3200 \times 0.052 \times 5 \]
\[ SI = 3200 \times 0.26 \]
\[ SI = 832 \]
3. Calculate the total amount:
\[ A = 3200 + 832 \]
\[ A = 4032 \]
**Result:**
The amount of money you'll have at the end of 5 years is **$4032**.
(Type an integer or a decimal in the box provided).
**Note:** This example highlights the formula for calculating simple interest and shows the steps to find the accumulated amount after the given time period.
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