Ken Corsig invested $20,000 at 8% annual interest and left the money invested without withdrawing any of the interest for 15 years. At the end of the 15 years, Ken withdrew the accumulated amount of money. What amount did Ken withdraw, assuming the investment earns simple interest?

Question

Quizplus · Accepted Answer

Simple interest is calculated using the formula: Interest = Principal x Rate x Time. Here, Interest = $20,000 x 0.08 x 15 = $24,000. The total amount withdrawn is the principal plus interest: $20,000 + $24,000 = $44,000.

Ken Corsig Invested $20,000 at 8% Annual Interest and Left