An investor opens an account with a principal of 6,390. The account earns 3.2% simple annual interest. What is the total account balance after 12 years?

Solution

An investor opens an account with a principal of 6, 390. The account earns 3.2% simple annual interest. What is the total account balance after 12 years?

Solution

Amount : 8843.76

Solution steps

Translate the problem into an equation:

A = 6390 (1 + 0.032 \cdot 12)

6390 (1 + 0.032 \cdot 12) = 8843.76

Amount : 8843.76

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