Question

S.O.S!!!You invest $5000 in an account at 5.5% per year simple interest. How much will you have in the account at the beginning of the 6th year? Round your answer to the nearest whole dollar.

Answer 1

You are given an investment of $5000 with a rate of 5.5% per year simple interest. You are required to get the total interest money after 5 years. Simple interest is the money that you can earn by investing initially some money. The percentage of the principal makes your investment grow. The simple interest formula is equal to the principal starting money multiplied by the interest rate and the time borrowed in years.

F = P (1+rn)

F = ($5000)[1+(0.055)(5)]

F = $6375

Answer 2

For simple interest,you would get the same amount of interest every year,let's find out the inteerest we would get yearly first:

The interest you would get yearly:
5000×5.5%
=$275

For six year,we would get:
275×6
=$1650

To find the total amount,we would add the original amount invested as well:

1650+5000
=$6650

Thus at the beginning of the 6th year you would get $6650.

Hope it helps!