cindy earns 6% simple interest each year on her savings account. if she has $850 in her account and leaves the money in there for 5 years. how much interest will the money earn? what is the new balance in cind's account?
850 * 0.06 = 51
51 * 5 = 255
850 + 255 = ?
To calculate the amount of interest Cindy will earn, we need to use the formula for simple interest:
Interest = Principal x Rate x Time
In this case, the principal is $850, the rate is 6% (or 0.06 in decimal form), and the time is 5 years.
So, to calculate the amount of interest earned over 5 years, we use the formula:
Interest = $850 x 0.06 x 5
Interest = $255
Therefore, the money will earn $255 in interest over the course of 5 years.
To find the new balance in Cindy's account, we need to add the interest earned to the initial principal. So:
New Balance = Principal + Interest
New Balance = $850 + $255
New Balance = $1,105
Hence, the new balance in Cindy's account after 5 years will be $1,105.