Question
Alark inverts \( \$ 1,000 \) at \( 6 \% \) simple interest for 5 yean How much is in the account at the end of the 5 yeans pertod? Answen \( \$ \square \)
Ask by Cross Willis. in the United States
Feb 03,2025
Real Tutor Solution
Tutor-Verified Answer
Answer
After 5 years, the account will have \$1,300.
Solution
To calculate the amount in the account after 5 years with simple interest, you can use the simple interest formula:
\[
\text{A} = \text{P} \times (1 + \text{r} \times \text{t})
\]
Where:
- \(\text{A}\) = the amount of money accumulated after \( t \) years, including interest.
- \(\text{P}\) = principal amount (\$1,000)
- \(\text{r}\) = annual interest rate (6% or 0.06)
- \(\text{t}\) = time the money is invested for (5 years)
Plugging in the values:
\[
\text{A} = 1000 \times (1 + 0.06 \times 5) = 1000 \times (1 + 0.30) = 1000 \times 1.30 = \$1,300
\]
**Answer:** \$1,300
Reviewed and approved by the UpStudy tutoring team
Like
error msg
Explain 
Simplify this solution The Deep Dive
To calculate the total amount in the account at the end of 5 years, we can use the formula for simple interest: \[ \text{Total Amount} = \text{Principal} + \text{Interest} \] \[ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \] For Alark's investment, the interest earned would be: \[ \text{Interest} = 1000 \times 0.06 \times 5 = 300 \] Now, add the interest to the principal: \[ \text{Total Amount} = 1000 + 300 = 1300 \] So, at the end of the 5 years, the total amount in the account is \( \$1,300 \).
