Question

Suppose your friend's parents invest $15,000 in an account paying 4 percent compounded annually. What will the balance be after 5 years? (12 points to whoever can help me!)

Answer 1

I = PRT
I = 15,000 x .04 x 1
Interest = 600 per year.....
600 x 5 = 3000 in 5 years......

So, 15,000 + 3000 = 18,000