A = P(1 + rt)
Where:
·
A = Total Accrued Amount (principal + interest)
·
P = Principal Amount
·
I = Interest Amount
·
r = Rate of Interest per year in decimal; r = R/100
·
R = Rate of Interest per year as a percent; R = r * 100
·
t = Time Period involved in months or years
A = 15,000(1+ 0.07(5))
A = 20,250 they acquired in total for 5 years
The yearly amount the get is 15,000 xx 0.07 = $ 1050 per
year
So in the next 25 years addition of 1050×25 = $26250 they
will get