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19 February, 14:31

Alex invested $10,500 in an account that pays 6 percent simple interest. how much money will he have at the end of four years?'

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  1. 19 February, 14:54
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    The amount generated from the investment with simple interest is calculated through the equation,

    F = P x (1 + in)

    where F is the future amount, P is the present worth, i is the decimal equivalent of the given interest and n is the number of interest period.

    From this item it can be identified that,

    P = $10,500

    i = 0.06

    n = 4

    Substituting the known values,

    F = ($10,500) x (1 + (0.06) (4))

    F = $13020

    Therefore, after four years, the amount of money that Alex will have is $13,020.
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