Question

Jen deposits $9,500 into a bank account that pays her 4.5% simple interest for 5 years. How much interesrt will she earn over 5 years?

Answer 1

$11838.7

General Formulas and Concepts:

Pre-Algebra

Order of Operations: BPEMDAS

1. Brackets
2. Parenthesis
3. Exponents
4. Multiplication
5. Division
6. Addition
7. Subtraction

• Left to Right

Algebra I

Simple Interest Rate Formula:
`\displaystyle A = P(1 + r)^t`

• P is principle amount
• r is rate
• t is time

Explanation:

Step 1: Define

Identify variables

P = 9500

r = 4.5% = 0.045

t = 5

Step 2: Find A

1. Substitute in variables [Simple Interest Rate Formula]: A = 9500(1 + 0.045)⁵
2. (Parenthesis) Add: A = 9500(1.045)⁵
3. Evaluate exponents: A = 9500(1.24618)
4. Multiply: A = 11838.7