Respuesta :
there are 5 more payments of interest
= 5 * 0.07 * 950 = 332.5
so amount in the account after 6 years = 950 + 332.5 = 1282.5
= 5 * 0.07 * 950 = 332.5
so amount in the account after 6 years = 950 + 332.5 = 1282.5
Answer:
$1282.5
Step-by-step explanation:
Given : Rate of interest = 7% = 0.07
The amount in the account is $950 in first year.
To Find : Amount in the account in year 6
Solution :
Since we need to calculate for sixth year and we are given the amount of first year . So, to calculate simple interest for sixth year we use time = 5 years
First we need to calculate the amount of interest for 5 years
Formula of simple interest : Principal * Rate * Interest
⇒[tex]S.I. = 950*0.07*5[/tex]
⇒[tex]S.I. = 332.5[/tex]
Thus, The simple interest for 5 years is $332.5
Now, amount in the account in year 1 is $ 950 . After the addition of interest for 5 years the amount in sixth year will be :
⇒ $ 950 +$332.5
⇒$1282.5.
Thus, the amount in sixth year will be $1282.5
