You invest $5000 in an account at 5.5% per year simple interest. How much will you have in the account after 5 years?

Question

You invest $5000 in an account at 5.5% per year simple interest. How much will you have in the account after 5 years?

2 Answers

Impact of this question

5766 views around the world

You can reuse this answer
Creative Commons License

Answer 1 · 2017-07-21T21:04:27

$$ 5000 + $ 1375 = $ 6375$ $$5000+$1375 = $6375$

Explanation:

With simple interest, interest is calculated on only the original amount.

$W W W W W W W W W W W P = principal$ $color(white)(WWWWWWWWWWW)P= "principal"$
$S I = \frac{P R T}{100} W W W W W W T = Time in years$ $SI = (PRT)/100color(white)(WWWWWW)T="Time in years"$
$W W W W W W W W W W W R = Rate of interest$ $color(white)(WWWWWWWWWWW)R= "Rate of interest"$

$S I = \frac{5000 \times 5.5 \times 5}{100} \leftarrow$ $SI= (5000xx5.5xx5)/100" "larr$ this is the amount of interest

$S I = 1375$ $SI= 1375$

The amount in the account will the original amount of $$ 5000$ $$5000$ plus the interest of $$ 1375$ $$1375$

$$ 5000 + $ 1375 = $ 6375$ $$5000+$1375 = $6375$

Answer 2 · 2017-07-21T21:06:49

$i = $ 1375$ $i=$1375$

Explanation:

The formula is $P r t + i$ $Prt+i$ where P is the principle, r=the interest rate as a decimal, t= the time in years, and i= the amount of interest.

$5000 \cdot 0.055 \cdot 5 = i$ $5000*0.055*5=i$
$i = $ 1375$ $i=$1375$

Science

Math

Humanities

... and beyond

You invest $5000 in an account at 5.5% per year simple interest. How much will you have in the account after 5 years?

2 Answers

Explanation:

Explanation:

Related questions

Impact of this question