Respuesta :
Answer:
€5624.32 in the bank after 3 years
Step-by-step explanation:
Simple Interest=P×r×t
Where:
�
P is the principal amount (the initial deposit)
�
r is the interest rate (as a decimal)
�
t is the time the money is invested for (in years)
In this case, Anthony deposited $5,000 with a 4% interest rate for 3 years. So:
Simple Interest
=
5000
×
0.04
×
3
=
600
Simple Interest=5000×0.04×3=600
Now, to find out the total amount Anthony will have after 3 years, we add the simple interest to the principal:
Total Amount
=
Principal
+
Simple Interest
=
5000
+
600
=
5600
Total Amount=Principal+Simple Interest=5000+600=5600
So, Anthony will have €5600 in the bank after 3 years with simple interest.
For Lucas, with compound interest, we use the formula for compound interest:
�
=
�
×
(
1
+
�
�
)
�
�
A=P×(1+
n
r
)
nt
Where:
�
A is the amount of money accumulated after
�
n years, including interest.
�
P is the principal amount (the initial deposit).
�
r is the annual interest rate (in decimal).
�
n is the number of times that interest is compounded per unit
�
t.
�
t is the time the money is invested for (in years).
In this case, Lucas also deposited $5,000 with a 4% interest rate compounded annually for 3 years. So:
�
=
5000
×
(
1
+
0.04
1
)
1
×
3
A=5000×(1+
1
0.04
)
1×3
�
=
5000
×
(
1.04
)
3
A=5000×(1.04)
3
�
=
5000
×
1.124864
A=5000×1.124864
�
≈
5624.32
A≈5624.32
So, Lucas will have approximately €5624.32 in the bank after 3 years with compound interest.
