Question

Ruth deposited $5,000 in a simple interest account that pays 1.6% interest annually. If Ruth leaves the money in the account for 9 years, how much money will be in her account after the 9 years?

Answer 1

Ruth will have $5,720 in her account after 9 years. This includes her original deposit of $5,000 and the simple interest earned over the 9 years, which is $720.

Step-by-step explanation:

Ruth deposited $5,000 in a simple interest account that pays 1.6% interest annually. To calculate the total amount in the account after 9 years, we use the simple interest formula: I = PRT, where I is the interest, P is the principal amount, R is the rate of interest per year, and T is the time in years.

Using Ruth's information: P = $5,000, R = 1.6/100 = 0.016, and T = 9 years, we calculate the interest.

Interest (I) = $5,000 × 0.016 × 9 = $720

The total amount in the account after 9 years is the principal plus the interest earned, which is $5,000 + $720 = $5,720.