Question

James deposited $575 into a bank account that earned 5.5% simple interest each year. No money was deposited into or withdrawn from the account.

Round your answer to the nearest cent.

Answer 1

The it is probably 654.06

Answer 2

So first we should find what 1% of 575 is. To do that de divide it by 1 and get 5.75. Since he gets 5.5 simple interest per year, we multiply 5.75 by 5.5. We get 31.625. This asks how much after 2 1/2 years, so lets multiply 31.625 by 2.5 and get 79.0625. Then add that amount to 575 and end out with 654.0625. But this question asks us to round to the nearest cent, and after rounding we have 654.06. So, after 2 1/2. years he has $654.06! Hope this helps.