Question

$250 is invested into an account that earns 5 ½ % simple interest for 10 years. What is the account total?

Answer 1

$387.50

Explanation:

First, converting R percent to r a decimal

r = R/100 = 5.5%/100 = 0.055 per year,

then, solving our equation

I = 250 × 0.055 × 10 = 137.5

I = $ 137.50

The simple interest accumulated

on a principal of $ 250.00

at a rate of 5.5% per year

for 10 years is $ 137.50.