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 If no money was deposited into or withdrawn from the account, how much money was in the account after ​ ​ 212 ​ ​ years? Round your answer to the nearest cent. Enter your answer in the box.

Answer 1

654.06

Explanation:

Answer 2

The answer is $654.06.
5.5% of $575 is $31.63. 575 x 0.055 = 31.63
This means that in one year he earns $31.63. In two years it will be $63.25 (31.63 x 2 = 63.25)
Then in half a year it will be $15.81 (31.63/2 = 15.81)
Finally add 15.81 and 63.25 to get $79.06 which you then add to the initial $575 to get the total amount earned in 2 1/2 years which is $654.06.