Question

Maya has savings of $30,000. She invests in a bond mutual fund that pays 6% interest each year. Ignoring compounding, what are Maya's total savings after 15 years? Ex: For $1,000 at 3% for 5 years, compute interest as $1,000 × 0.03 × 5 = $150, so the total savings becomes $1,000 + $150 = $1,150.

Answer 1

$~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \ 30000\\ r=rate\to 6\%\to \frac{6}{100}\dotfill &0.06\\ t=years\dotfill &15 \end{cases} \\\\\\ A=30000[1+(0.06)(15)]\implies A=30000(1.9)\implies A=57000$