Answer: The amount that will be in the account after 11 years is $12679.5
Step-by-step explanation:
We would apply the formula for determining simple interest which is expressed as
I = PRT/100
Where
I represents interest paid on the amount invested.
P represents the principal or amount invested.
R represents interest rate
T represents the duration of the investment.
From the information given,
P = 7900
R = 5.5%
T = 11 years
I = (7900 × 5.5 × 11)/100 = $4779.5
The amount that will be in the account after 11 years is
7900 + 4779.5 = $12679.5
Based on the amount invested and the interest rate, the amount that will be i the account after 11 years will be $14,236.53.
This relates to the future value of the amount and the formula for that is:
= Amount x ( 1 + rate) ^ Number of years
Solving will give:
= 7,900 x (1 + 5.5%)¹¹
= 7,900 x 1.8020924
= $14,236.53
In conclusion, the account will have $14,236.53
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