Question

1) James deposited $4,000 into an account. He made

no additional deposits or withdrawals. James earned
5.75% annual simple interest on the money in the
account.
What was the balance in dollars and cents in James
account at the end of 5 years?

Answer 1

$5150

Explanation:

Given data

Principal=$4000

Rate=5.75%

Time= 5 years

The expression for the balance on simple interest is

A=P(1+rt)

substitute

A=4000(1+0.0575*5)

A=4000(1+0.2875)

A=4000X(1.2875)

A=$5150

Hence the balance is $5150