The Sommers invested $5000 for three years at 6.5%. How much interest did the investment earn in three years? What was the total amount of the account after three years?

Accepted Solution

Answer:the interest is $975the total amount  is $5975Step-by-step explanation:lets use tje formula I=PRTwhere I is interest earnedP is the principal amount(original amount)R is the rate of interest and T is the time in yearssothe principal amount is 5000 since it is the original amountrate is [tex]\frac{6.5}{100}[/tex]=0.065time is 3 yearslets plug these values into our equation:5000*0.065*3=I5000*0.065*3=975the interest is $975the next part of the question is asking for the balance or the total amount which is principal+interest5000+975=5975the total amount or balance is $5975hope this helps