Problem
Mateo has $39,460 in a savings account that earns 7% annually. The interest is not compounded. How much will he have in 5 years?
Solution
For this case we can assume that we have a simple interest with the formula given by:
A= P(1+rt)
And we can find the final value replacing on this case:
P= 39460, r= 0.07, t= 5
A= 39460(1 + 0.07*5) = 39460* 1.35= 53271
