Question

Suppose you invest $5000 in an account that earns 5% simple interest annually.

Use this information to complete the table below. Round to the nearest cent as needed.
Year Starting Balance
1
2
3 $
4
5
IA
$
$5000
$5250
$5750
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$
LA
SA
Interest
$250
$250
Ending Balance
$
SA
SA
$5250
$5750

Answer 1

Refer to the linked file for the answer.

Explanation:

I used a table creating tool to create this table.

Simple interest is interest calculated from the principal (starting amount of money), while compound interest is calculated from the updates amount of money. That is why the interest in the table stays the same. Add Interest to Starting Balance to get Ending Balance.