Asked by Help in Math
After 5 years, how much INTEREST will Kevin earn in interest from his savings account?
Given the fact:
Kevin deposits $175 each year on his birthday for 5 year into his savings account.
His account earns simple interest at a rate of 3.5% interest.
A.) $91.89 ****
B.) $30.65
C.) $61.25
D.) $18.38
175 * 0.035 = 6.13 int. yr 1
175 + 175 = 350 * 0.035 = 12.25 int. yr 2
350 + 175 = 525 * 0.035 = 18.38 int. yr 3
525 + 175 = 700 * 0.035 = 24.50 int. yr 4
700 + 175 = 875 * 0.035 = 30.63 int. yr 5
=$91.89
I=PRT
But NOT I=175 * 0.035 * 5 = $30.65 ???
Given the fact:
Kevin deposits $175 each year on his birthday for 5 year into his savings account.
His account earns simple interest at a rate of 3.5% interest.
A.) $91.89 ****
B.) $30.65
C.) $61.25
D.) $18.38
175 * 0.035 = 6.13 int. yr 1
175 + 175 = 350 * 0.035 = 12.25 int. yr 2
350 + 175 = 525 * 0.035 = 18.38 int. yr 3
525 + 175 = 700 * 0.035 = 24.50 int. yr 4
700 + 175 = 875 * 0.035 = 30.63 int. yr 5
=$91.89
I=PRT
But NOT I=175 * 0.035 * 5 = $30.65 ???
Answers
Answered by
Damon
175 * 0.035 = 6.13 int. yr 1 so now 181.13
181.13 + 175 = 356.13 * 0.035 = 12.46 int. yr 2
etc, remember principal has increased each year
181.13 + 175 = 356.13 * 0.035 = 12.46 int. yr 2
etc, remember principal has increased each year
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