Question

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?

Answer 1

Answer:

The amount in the account in the  beginning of the 6th year is $6375 .

Step-by-step explanation:

Formula

$Simple\ interest = \frac{Principle\times Rate\ times Time}{100}$

As given

You invest $5000 in an account at 5.5% per year simple interest.

Principle = $ 5000

Rate = 5.5 %

Time = 5 years

(As calculate amount in the account for beginning of 6th year.)

Putting all the values in the formula

$Simple\ interest = \frac{5000\times 5.5\times 5}{100}$

$Simple\ interest = 50\times 5.5\times 5$

Simple interest = $ 1375

Amount =  Principle + Simple interest

Putting values in the above formula

Amount =  $5000 + $1375

Amount = $ 6375

Therefore the amount in the account in the  beginning of the 6th year is $ 6375 .