Question

Akiko has a savings with 5000 in it that earns 1.4% simple interest per year. How much money, to the nearest penny, will akiko have in 6 years? Give your answers in dollars

Answer 1

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$5000\\ r=rate\to 1.4\%\to (1.4)/(100)\dotfill &0.014\\ t=years\dotfill &6 \end{cases} \\\\\\ A=5000[1+(0.014)(6)]\implies A=5000(1.084) \implies A = 5420`