Question

Mary deposit $7,500 into the bank. She can't withdraw or deposit any more money for six years. She earns 6% interest during that time.

A) How much interest will she have earned for at the end of six years?
B) What will her New Balance be when she is finally able to withdraw her money?

Please help and show how you did it. Thank you!!

Answer 1

A: 10% of 7,500 = 750, so 1% of 7500 must equal 75. 75 x 6 = 450. So she earns $450 over the course of 6 years.
7500/10 = 750
750/10 = 75 (or 1% of 7500)
75 x 6 = 450



B: 7500 + 450 = 7950. Her new balance is $7950