Question

An account earns annual simple interest. Find the balance of the account.

$5,000 at 6% for 9 months.

Answer 1

$7700

Explanation:

As the account earns 6% interest, if we find 6% of $5000 we get $300, the interest is simple and given every month, meaning you get $2700 in interest as $300 x 9 months = $2700

$5000 initial + $2700 interest = $7700

EDIT:

It could be that the interest is 6% yearly, which means that yearly you get 6% interest, and the answer is $5225.

6% interest is $300 per year

$300÷12= $25 per month

$25 x 9 months = $225

$5000 initial plus $225 interest = $5225 total