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
Jul 21, 2017

$5000+$1375=$6375

Explanation:

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

WWWWWWWWWWWP=principal
SI=PRT100WWWWWWT=Time in years
WWWWWWWWWWWR=Rate of interest

SI=5000×5.5×5100 this is the amount of interest

SI=1375

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

$5000+$1375=$6375

Jul 21, 2017

i=$1375

Explanation:

The formula is 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.

50000.0555=i
i=$1375