Question

S.O.S!!!You invest $5000 in an account at 5.5% per year simple interest. How much will you have in the account at the beginning of the 6th year? Round your answer to the nearest whole dollar.

Answer 1

For simple interest,you would get the same amount of interest every year,let's find out the inteerest we would get yearly first:

The interest you would get yearly:
5000×5.5%
=$275

For six year,we would get:
275×6
=$1650

To find the total amount,we would add the original amount invested as well:

1650+5000
=$6650

Thus at the beginning of the 6th year you would get $6650.

Hope it helps!