Question

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?

Answer 1

Answer: 6375

Step-by-step explanation: I took the test

Answer 2

The amount in the account in the beginning of the 6th year is $6375 .

Explanation:

Formula

`Simple\ interest = (Principle* Rate\ times Time)/(100)`

As given

You invest $5000 in an account at 5.5% per year simple interest.

Principle = $ 5000

Rate = 5.5 %

Time = 5 years

(As calculate amount in the account for beginning of 6th year.)

Putting all the values in the formula

`Simple\ interest = (5000* 5.5* 5)/(100)`

`Simple\ interest = 50* 5.5* 5`

Simple interest = $ 1375

Amount = Principle + Simple interest

Putting values in the above formula

Amount = $5000 + $1375

Amount = $ 6375

Therefore the amount in the account in the beginning of the 6th year is $ 6375 .