Answer:
Final answer is $1280.
Step-by-step explanation:
Given that $250 is invested at an interest rate of 10.3% for 40 years.
Now we need to determine the amount of that investment after 40 years.
It doesn't say anything about compounding period so I will consider that as simple interest.
Hence let's use simple interest formula:
[tex]A=P(1+RT)[/tex]
Where amount invested = P = 250
rate of interest = R = 10.3% = 0.103
Time = T = 40 years
Now plug these values into above formula
[tex]A=250(1+0.103*40)=250(1+4.12)=250(5.12)=1280[/tex]
Hence final answer is $1280.
Answer:
$1280.
Step-by-step explanation:
We have been given that an amount of $250 is invested at an interest rate of 10.3% for 40 years.
To find the amount after 40 years, we will use simple interest formula.
[tex]A=P(1+rt)[/tex], where,
A = Amount after t years,
P = Principal amount,
r = Annual interest rate in decimal form,
t = Time in years.
Let us convert our given interest rate in decimal as:
[tex]10.3\%=\frac{10.3}{100}=0.103[/tex]
Upon substituting our given values in above formula, we will get:
[tex]A=\$250(1+0.103*40)[/tex]
[tex]A=\$250(1+4.12)[/tex]
[tex]A=\$250(5.12)[/tex]
[tex]A=\$1280[/tex]
Therefore, there will be $1280 in account after 40 years.
