Annie invests $400 in a bank that offers 5.5% simple annual interest after 6 years her investment will increase by blank dollars

Question

asked Dec 26, 2022 206k views

1 Answer

Matthew Daly · Answer 1 · 2022-12-30T20:00:46+0000

Annie's investment will increase by $532 after 6 years.

To find the amount of money Annie's investment will increase by after 6 years with a simple annual interest rate of 5.5%, we can use the formula:

Amount = Principal + (Principal * Rate * Time)

Here, the Principal is $400, the Rate is 0.055 (5.5% expressed as a decimal), and the Time is 6 years. Plugging in these values:

Amount = $400 + ($400 * 0.055 * 6) = $400 + $132 = $532

Therefore, Annie's investment will increase by $532 after 6 years.