Question

Chanelle deposits $7,500 into the bank. She does not withdraw or deposit money for 6 years. She earns 6% interest during that time. a. How much interest will she have earned at the end of 6 years? She will earn $2,700 interest b. What will the balance be when she is finally able to withdraw her money?

Answer 1

Answer: a. $2700

b. $10200

Explanation:

a. The interest she would have earned at the end of the 6 years can be gotten using the formula

= PRT/100

= $7500 × 6% × 6

= $7500 × 6/100 × 6

= $7500 × 0.06 × 6

= $2700

b. Her balance when she wants to withdraw the money would be:

= $7500 + $2700

= $10200