Question

A trust fund eels is 6% simple interest divide into its members accounts every month if a member has $5000 in the funds account how much money would be in that account after three months

Answer 1

$5073.37

Explanation:

We can use the simple interest rate (appreciation) formula: A = P(1 + r)^t

Because it gives us 3 months, we need to put it in terms of years. That will give us 1/4 of a year:

A = 5000(1 + 0.06)^0.25

When you plug that into the calc, you should get 5073.37 as your final answer!