Rashawn puts $550 in an account earning 8% simple interest annually.

How much will he have in his account after 6 years?

To calculate how much Rashawn will have in his account after 6 years with simple interest, we use the formula for simple interest:

\[
A = P(1 + rt)
\]

Where:
- $A$ is the total amount after interest,
- $P$ is the principal amount (initial investment),
- $r$ is the annual interest rate (in decimal form),
- $t$ is the time in years.

In this case:
- $P = 550$,
- $r = 8\% = 0.08$,
- $t = 6$ years.

Now, substituting these values into the formula:

\[
A = 550(1 + 0.08 \times 6)
\]

\[
A = 550(1 + 0.48) = 550(1.48)
\]

\[
A = 814
\]

So, Rashawn will have **$814** in his account after 6 years.

Would you like more details or have any questions?

Here are 5 related questions you might explore:
1. What if the interest was compounded annually instead of simple interest?
2. How much interest will Rashawn earn over the 6 years?
3. What would the amount be if the interest rate were 10% instead of 8%?
4. How long would it take for the amount to double at 8% simple interest?
5. How does the formula for compound interest differ from simple interest?

**Tip:** Simple interest grows at a constant rate, while compound interest grows at an increasing rate due to interest-on-interest effects.

Rashawn puts $550 in an account earning 8% simple interest annually. How much will he have in his account after 6 years?

Learn how to calculate the simple interest on $550 at an annual interest rate of 8% over 6 years. This problem involves the formula A = P(1 + rt) and explores key concepts such as percentage and interest calculations. Ideal for students in Grades 7-9.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation