Question

$8, 926.05 invested today will accumulate to what amount in 84 days from today at 3.6% simple interest?

Use six decimal places for any intermediate calculations and round the final answer to 2 decimal places. (e.g., $0.00)

Answer 1

The formula for simple interest is

Simple Interest = I * r * t

I = Initial investment

r = rate of return

t = total time invested

Accordingly,

Let us find out how much our investment will fetch in 84 days substituting the given values in the above formula

= 8926.05 * 0.036 * 84/365

We have been given interest for whole year hence we have to find out 84 days interest so we multiplied by 84/365

Now 8926.05 * 0.008285

Hence the simple interest is 73.951713

Now the total accumulated balance is principal + interest

= 8926.05 + 73.951713 = 9000.00

Hence the accumulated balance is $9000.00