If Sara deposited $700 at an interest rate of 6% for 5 years, and then decides to close her account, how much money will she have in total?
If it's simple not compound interest --
I = PRT
I = 700 * 0.06 * 5
I = ?
Add the interest to the principle.
I = $210?
or would I be 700+210 which is $910
Yes, you're right.
She will have a total of $910.
To determine how much money Sara will have in total after 5 years, we need to calculate the interest earned on her deposit and add it to the initial deposit.
First, we calculate the interest earned using the formula: principal * interest rate * time.
Principal (P) = $700
Interest Rate (R) = 6% = 0.06
Time (T) = 5 years
Interest Earned = P * R * T
= $700 * 0.06 * 5
= $210
Now, to find the total amount, we add the interest earned to the initial deposit:
Total Amount = Initial Deposit + Interest Earned
= $700 + $210
= $910
Therefore, Sara will have a total of $910 in her account after 5 years.