Answer:
The total amount due after five years is $57,000.
Step-by-step explanation:
Recall that simple interest is given by the formula:
[tex]\displaystyle A=P(1+rt)[/tex]
Where A is the final amount, P is the principal amount, r is the rate, and t is the time (in years).
Since we are investing a principal amount of $38,000 at a rate of 10.0% for five years, P = 38000, r = 0.1, and t = 5. Substitute:
[tex]\displaystyle A=38000(1+(0.1)(5))[/tex]
Evaluate. Hence:
[tex]\displaystyle A=\$ 57,000[/tex]
The total amount due after five years is $57,000.
