Chelsea deposits $600.00 into a bank account and is earning simple interest from the bank. After 4 years, her account has a balance of $621.60. Chelsea decided to put $1,100.00 into the account instead of $600.00, how much would she have after 7 years? Explain.

Question

Mathematics

Mollie

10 May, 06:05

Chelsea deposits $600.00 into a bank account and is earning simple interest from the bank. After 4 years, her account has a balance of $621.60. Chelsea decided to put $1,100.00 into the account instead of $600.00, how much would she have after 7 years? Explain.

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Answers (1)

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Alessandro Dickson · Answer 1

Step-by-step explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the amount deposited.

P represents the principal or amount deposited.

R represents interest rate

T represents the duration in years.

Considering the first instance, we would determine the interest rate.

From the information given,

P = $600.00

T = 4 years

I = 621.60 - 600 = $21.60

Therefore,

21.6 = (600 * R * 4) / 100

21.6 = 24R

R = 21.6/24

R = 0.9%

She decided to put $1,100.00 into the account. Therefore

P = $1100.00

R = 0.9%

T = 7 years

Therefore,

I = (1100 * 0.9 * 7) / 100

I = 69.3

The amount that she would have after 7 years is

1100 + 69.3 = $1169.3