Question

Ahmed invests $5000 in an account at 5.5% per year simple interest. How much will he have in the account after 5 years?

Answer 1

$5275

Explanation:

Since it is simple interest, 5.5% of $5,000 is 275. The way I got this was:

5.5% is also `(5.5)/100`
so you can multiply 5.5 by 5,000, getting 27500.
Divide 27500 by 100 and you will get 275.
Since that is the amount of money you earn in interest, add it to you total of $5000, giving you:

$5275