Answer: the maximum price (future amount) he could pay is
“$4,882.5“
Explanation:
The question above can be calculated using simple interest formula with amount ;
A = p + prt
A = p (1 + rt)
From above question, variables given are:
principal 'p' = $3,500
time 't' = 5years
interest rate = 7.9% = 0.079
A = p(1 + rt)
A= 3500[1 + 0.079(5)]
A = 3500 [ 1 + 0.395]
A = 3500 ( 1.395)
A = $4,882.5
Approximated to $4,883 as a whole figure.
This is the maximum amount he could pay after 5 years.
