Respuesta :
Answer:
The accrued value after 5 years is $1,605.95.
The accrued value after 10 years is $1,672.9.
The accrued value after 15 years is $1,739.85.
Step-by-step explanation:
This is a simple interest problem.
The simple interest formula is given by:
[tex]E = P*I*t[/tex]
In which E are the earnings, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.
After t years, the total amount of money is:
[tex]T = E + P[/tex].
In this problem, we have that:
[tex]P = 1539, I = 0.01[/tex]
Accrued value after 5 years
This T when t = 5. So
[tex]E = P*I*t[/tex]
[tex]E = 1339*0.01*5 = 66.95[/tex]
The total is
[tex]T = E + P = 66.95 + 1539 = 1605.95[/tex]
The accrued value after 5 years is $1,605.95.
Accrued value after 10 years
This T when t = 10. So
[tex]E = P*I*t[/tex]
[tex]E = 1339*0.01*10 = 133.9[/tex]
The total is
[tex]T = E + P = 133.9 + 1539 = 1672.9[/tex]
The accrued value after 10 years is $1,672.9.
Accrued value after 15 years
This T when t = 15. So
[tex]E = P*I*t[/tex]
[tex]E = 1339*0.01*15 = 200.85[/tex]
The total is
[tex]T = E + P = 200.85 + 1539 = 1739.85[/tex]
The accrued value after 15 years is $1,739.85.
