Mario invested $6,000 in an account that pays 5% annual interest compounded annually how much will be there after 2.5 years
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Answer:
Step-by-step explanation:
The formula for simple interest is
where <em>p</em> is the principal, <em>r </em>is the rate, and <em>t</em> is the time.
The principal, or initial amount is $800 and the time is 5 years The interest rate is 2.5%, but we must convert to a decimal.
Divide by 100 or move the decimal place two spots to the left.
- 2.5/100=0.025 or 2.5 ⇒ 0.25 ⇒ 0.025
Substitute the known values into the formula.
Multiply.
After 5 years, Suzette's account has earned $100.00