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Tema [17]
3 years ago
5

Tim’s savings account pays a simple annual interest rate of 3.5%. Suppose he deposits $5,500 in the account and makes no additio

nal deposits or withdrawals for 5 years. What will the total value of the account be after 5 years?
Mathematics
1 answer:
dimaraw [331]3 years ago
6 0

$6462.5

Simple Interest = (Principal × Rate × Time) / 100

SI = (P×R×T) / 100

P = 5500

R = 3.5

T = 5

[substitute the values into the formula]

SI = (5500 × 3.5 × 5) / 100

SI = 96250 / 100

SI = 962.5

Total = Principal + Simple Interest

T = P + SI

T = 5500 + 962.5

T = 6462.5

The total value of the account after 5 years will be $6462.5

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