To prepare for retirement, Chris invests $15,000 with a simple interest rate of 4.8%. Find the final amount of Chris's investment if he invests this amount for the next 30 years. Round the answer to two decimal places as needed.

Answer 1

The formula for calculating simple interest is:

A = P(1 + rt)

where:
A = the final amount
P = the principal amount (the initial investment)
r = the interest rate (in decimal form)
t = the time (in years)

In this case:
P = $15,000
r = 4.8% = 0.048 (converted to decimal form)
t = 30 years

Plugging in these values into the formula, we get:

A = 15,000(1 + 0.048 * 30)
A = 15,000(1 + 1.44)
A = 15,000(2.44)
A = $36,600

Therefore, the final amount of Chris's investment after 30 years will be $36,600.

Answer 2

Anne invests $7000 into a retirement account with a compound interest rate of 3.3% compounded quarterly. What is Anne's final amount after 25 years of investment? Round the answer to the nearest cent.

Answer 3

The formula for calculating compound interest is:

A = P(1 + r/n)^(nt)

where:
A = the final amount
P = the principal amount (the initial investment)
r = the interest rate (in decimal form)
n = the number of times interest is compounded per year
t = the time (in years)

In this case:
P = $7000
r = 3.3% = 0.033 (converted to decimal form)
n = 4 (quarterly compounding)
t = 25 years

Plugging in these values into the formula, we get:

A = 7000(1 + 0.033/4)^(4*25)
A = 7000(1.00825)^(100)
A ≈ $14,104.85

Therefore, Anne's final amount after 25 years of investment will be approximately $14,104.85.