Question

James deposited $575 into a bank account that earned 5.5% simple interest each year. If no money was deposited into or withdrawn from the account, how much money was in the account after ​ ​ 21 /2 ​ ​ years? Round your answer to the nearest cent.

Answer 1

First substitute variables in for the equation:
I = PRT
I = (575)(0.055)(2.5) I don't know if this is 21 and 1/2 or 2 and 1/2.
Solve for I:
I = (31.625)(2.5)
I = 79.0625
Then add this to the principle since no money was withdrawn or deposited:
79.0625 + 575
654.0625
The round to the nearest hundredth since that would be the nearest cent:

654.06.
Hope this helps!