Question

Last year, Deandre opened an investment account with S5800. At the end of the year, the amount in the account had increed by 7.5%. How much is this

increase in dollars? How much money was in his account at the end of last year?
Increase in amount: $
Year-end amount: $

Answer 1

Explanation:

We would apply the formula for determining simple interest which is expressed as

I = PRT/100

Where

I represents interest paid on the amount invested.

P represents the principal or amount invested.

R represents interest rate

T represents the duration of the investment in years.

From the information given,

P = 5800

R = 7.5

T = 1 year

I = (5800 × 7.5 × 1)/100 = $435

Therefore,

The increase in amount is $435

The Year-end amount is

5800 + 435 = $6235