Question

Stephanie is earning simple interest of 3.5% on her money each month. She currently has $1325 in her account. What will her balance be in 5 months?

Answer 1

Answer:

$1556.88

Step-by-step explanation:

Since Stephanie is earning simple interest and not compound interest, we can multiply her interest rate for each month by how many months we are calculating for.

0.035 x 5 = 0.175

Then multiply that by her current balance but change the 0 in front of the 0.175 to a 1 to reduce the number of steps we have to take. (It automatically adds what is earned in interest to her current balance.)

1.175 x 1325 = 1556.875