Cathy makes a deposit of 4500 dollars into an account that pays 5.8 percent simple interest. How much is in the account 8 years later?
I = PRT
I = 4500 * 0.058 * 8
Solve for I and add it to 4500.
2433
To find out how much is in the account 8 years later, we can use the formula for simple interest:
I = P * r * t
Where:
I = Interest earned
P = Principal amount (original deposit)
r = Interest rate (as a decimal)
t = Time period (in years)
In this case, the principal amount (P) is $4500, the interest rate (r) is 5.8% or 0.058 as a decimal, and the time period (t) is 8 years.
Calculating the interest earned:
I = 4500 * 0.058 * 8
I = 2088
Now, to find the total amount in the account (including the interest), we add the interest earned to the original principal:
Total amount = Principal + Interest
Total amount = 4500 + 2088
Total amount = 6588
Therefore, there will be $6588 in the account 8 years later.