Question

Eira is opening a new savings account and depositing $ 1,150 into it. The account has an annual simple interest rate of 4.5%. How much will be in the account after 5 years if she doesn't deposit or withdraw any money

Answer 1

The amount in the account after 5 years will be $1,408.75.

Step-by-step explanation:

To calculate the amount in the account after 5 years, we can use the simple interest formula: A = P(1 + rt), where A is the amount, P is the principal (initial deposit), r is the interest rate (in decimal form), and t is the time (in years).

In this case, the principal is $1,150, the interest rate is 4.5%, and the time is 5 years.

Substituting these values into the formula, we get:

A = $1,150(1 + 0.045 * 5)

Simplifying the equation:

A = $1,150(1 + 0.225)

A = $1,150(1.225)

A = $1,408.75

So, there will be $1,408.75 in the account after 5 years if no deposits or withdrawals are made.