To calculate the future value of Tyler's mom's investment after 30 years with a simple interest rate of 4%, we can use the formula:
Future Value = Present Value + (Present Value * Interest Rate * Time)
= $1000 + ($1000 * 0.04 * 30)
= $1000 + ($1000 * 0.04 * 30)
= $1000 + ($1200)
= $2200
Therefore, Tyler's mom's investment would be worth $2200 after 30 years in Bank A.
Tyler’s mom also has $1000 that she wants to put in a savings account. She is saving her money for retirement. She plans to retire in 30 years.
Tyler’s mom must also choose between Bank A and Bank B.
Bank A offers 4% simple interest. How much would Tyler’s mom’s investment be worth after 30 years in this account? Show your calculations below.
1 answer
1 answer