Question

You invest 5000 in an account at 5.5% per year simple intrest how much will you have in the account at the beginning of the 6th year

Answer 1

I=Prt  Simple interest is the principle times the rate times the time.

The balance will be the principle plus that interest so:

B=P(1+rt), since P=5000 and the rate is 0.055

B=5000(1+0.055t) so at the beginning of the sixth year you will have earned five years of interest.

B=5000(1+0.055(5))

B=$6375