Studdy AI Logo
Math  /  Numbers & Operations

QuestionIf $22\$ 22 is invested at a simple interest rate of 2%2 \% per year, what would the total account balance be after thirty years?
The total account balance would be $\$ □\square (Round to the nearest cent as needed.)

Studdy Solution

STEP 1

1. The principal amount invested is $22 \$22 .
2. The simple interest rate is 2% 2\% per year.
3. The time period for the investment is 30 30 years.
4. We are calculating the total account balance, which includes both the principal and the interest earned.

STEP 2

1. Define the formula for simple interest.
2. Calculate the interest earned over the period.
3. Calculate the total account balance.

STEP 3

The formula for simple interest is given by:
I=P×r×t I = P \times r \times t
where I I is the interest, P P is the principal amount, r r is the rate of interest per year, and t t is the time in years.

STEP 4

Substitute the given values into the simple interest formula to calculate the interest earned.
Given: P=22 P = 22 , r=0.02 r = 0.02 (since 2%=0.02 2\% = 0.02 ), t=30 t = 30 .
I=22×0.02×30 I = 22 \times 0.02 \times 30

STEP 5

Calculate the interest:
I=22×0.02×30=13.2 I = 22 \times 0.02 \times 30 = 13.2

STEP 6

Calculate the total account balance by adding the interest to the principal.
Total Balance=P+I \text{Total Balance} = P + I Total Balance=22+13.2 \text{Total Balance} = 22 + 13.2

STEP 7

Calculate the total account balance:
Total Balance=35.2 \text{Total Balance} = 35.2
Round to the nearest cent:
Total Balance=35.20 \text{Total Balance} = 35.20
The total account balance after thirty years would be:
$35.20\boxed{\$35.20}

Was this helpful?

Studdy solves anything!

banner

Start learning now

Download Studdy AI Tutor now. Learn with ease and get all help you need to be successful at school.

ParentsInfluencer programContactPolicyTerms
TwitterInstagramFacebookTikTokDiscord