To find the final amount of Chris's investment, we use the formula for simple interest:
I = P * r * t
Where:
- I is the interest earned
- P is the principal amount (initial investment)
- r is the interest rate per period
- t is the number of periods
Given:
P = $15,000
r = 4.8% = 0.048
t = 30 years
We can plug in the values:
I = 15000 * 0.048 * 30
I = $21,600
To find the final amount, we add the interest earned to the principal:
Final amount = Principal + Interest
Final amount = $15,000 + $21,600
Final amount = $36,600
Therefore, the final amount of Chris's investment after 30 years would be $36,600.
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
1 answer