A student saving to purchase a car deposited $3,500 into an account that earned $600 in interest after 5 years. Find the maturity value.
Question
A student saving to purchase a car deposited 600 in interest after 5 years. Find the maturity value.
Solution
Sure, let's solve this step by step.
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Identify the principal amount (P): The principal amount deposited is $3,500.
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Identify the interest earned (I): The interest earned after 5 years is $600.
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Calculate the maturity value (A): The maturity value is the sum of the principal amount and the interest earned.
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Substitute the given values:
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Perform the addition:
So, the maturity value is $4,100.
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