What is $25,000 at 8% for 5 years?

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What is $25,000 at 8% for 5 years?

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Answer 1 · 2017-05-31T04:20:23

$$ 35000$ $$35000$ .

Explanation:

Although there is no context, there is no mention of "compounding" and annuities (words like "monthly payment" indicates an annuity). Therefore, the only formula we can use is $I = P r t$ $I=Prt$ .

=> Where $I$ $I$ is the interest - money earned.
=> Where $P$ $P$ is the principal - money deposited.
=> Where $R$ $R$ is the rate - given as a decimal.
=> Where $T$ $T$ is the time (years).

$I = P \cdot R \cdot T$ $I=P*R*T$

$I = 25000 \times 0.08 \times 5$ $I=25000 xx 0.08 xx 5$

$I = 10000$ $I=10000$

Now we add the interest to the deposited principal to get the total.

$T = P + I$ $T=P+I$

$T = 25000 + 10000$ $T=25000+10000$

$T = 35000$ $T=35000$

Therefore, after $5$ $5$ years, the investment is worth $$ 35000$ $$35000$ .

Hope this helps :)

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What is $25,000 at 8% for 5 years?

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