Financial Formula

Question

3. An account that earns 2.99 % simple interest initially contains $5000. How much will be in the account
in 54 months?

Answer 1

Use formula found in your class material.

Answer 2

The underlying formula that you want to use here is

Interest = Principal x Rate x Time

Interest = $5000 x 0.0299 x 4.5

Interest = $672.75

meaning that the balance in the account will be

5000 + 672.25

=$5672.75