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Maya has savings of $50,000. She invests in a bond mutual fund that pays 4% interest each year. Ignoring compounding, what are Maya's total savings after 20 years? Ex: For $1,000 at 3% for 5 years, compute interest as $1,000 × 0.03 × 5 = $150, so the total savings becomes $1,000 + $150 = $1,150.

Respuesta :

50,000 x 0.04 x 20=40,000
The total saving after 20 years 50,000+40,000=90,000$

Maya's total savings for 20 years is $90000.

Given that, Maya has savings of $50,000, a rate of interest=4% and time period=20 years.

What is the formula to compute the interest?

The interest formula includes two types of interests - simple interest and compound interest. The fee paid to the lender for lending a loan is called the interest. This extra amount or the interest is what needs to be paid along with the actual loan.

The formula to compute the interest=(P×T×R)/100

Where, P=Principal, T=Time period and R=Rate of interest.

Now, the interest=(50000×20×4)/100=$40000

Total savings=50000+40000=$90000

Therefore, Maya's total savings for 20 years is $90000.

To learn more about the interest visit:

https://brainly.com/question/11339060.

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