Determine the amount of an investment if $250 is invested at an interest rate of 10.3% for 40 years. round to the rearest penny

Final answer is $1280.

Step-by-step explanation:

Given that $250 is invested at an interest rate of 10.3% for 40 years.

Now we need to determine the amount of that investment after 40 years.

It doesn't say anything about compounding period so I will consider that as simple interest.

Hence let's use simple interest formula:

Where amount invested = P = 250

rate of interest = R = 10.3% = 0.103

Time = T = 40 years

Now plug these values into above formula

Hence final answer is $1280.

$1280.

Step-by-step explanation:

We have been given that an amount of $250 is invested at an interest rate of 10.3% for 40 years.

To find the amount after 40 years, we will use simple interest formula.

, where,

A = Amount after t years,

P = Principal amount,

r = Annual interest rate in decimal form,

t = Time in years.

Let us convert our given interest rate in decimal as:

Upon substituting our given values in above formula, we will get:

Therefore, there will be $1280 in account after 40 years.

step-by-step explanation:

step-by-step explanation:

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