Question

Michael deposited $2,500 in a savings account that pays 1.6% simple interest. He kept the money in the account for 5 years without any deposits or

withdrawals. How much was in the account after 5 years?
There was
in the account after 5 years.

Answer 1

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$2500\\ r=rate\to 1.6\%\to (1.6)/(100)\dotfill &0.016\\ t=years\dotfill &5 \end{cases} \\\\\\ A=2500[1+(0.016)(5)] \implies A=2500(1.08)\implies A = 2700`