Question

The Sommers invested $5000 for three years at 6.5%. How much interest did the investment earn in three years? What was the total amount of the account after three years?

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Answer 1

1.)$975.00

2.$)5,975

Explanation:

5,000*3*6.5=975.00

5,000+975=5,975

Hope this helps :)

Answer 2

$1039.74 and $6039.74

Explanation:

Ok so if this is growing exponentially and is giving 6.5% per year then you would do (5000*0.065) + 5000 which is 5325 then you would do (for year 2). (5325*0.065) + 5325 which is 5671.125. And lastly, you would do (5671.125*0.065) + 5671.125 which is 6039.74 (rounded answer).