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
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.