Answer to Question #271806 in Financial Math for Zai

Question

1. Marinel received 1,450,500.00 pesos as her inheritance from her parents. She deposited the said amount in a time a deposit with 1% simple interest rate per annum, how much money will be accumulated after 7years?

Answer 1

Simple interest

$$A=P(1+rt)$$

Given

$P=1450500$

$r=0.01$

$t=7$

Substitute

$$A=1450500(1+0.01(7))=1552035$$

1,552,035.00 pesos will be accumulated after 7years.