# Math

After 5 years, how much INTEREST will Kevin earn in interest from his savings account?
Given the fact:
Kevin deposits \$175 each year on his birthday for 5 year into his savings account.
His account earns simple interest at a rate of 3.5% interest.

A.) \$91.89 ****
B.) \$30.65
C.) \$61.25
D.) \$18.38

175 * 0.035 = 6.13 int. yr 1
175 + 175 = 350 * 0.035 = 12.25 int. yr 2
350 + 175 = 525 * 0.035 = 18.38 int. yr 3
525 + 175 = 700 * 0.035 = 24.50 int. yr 4
700 + 175 = 875 * 0.035 = 30.63 int. yr 5
=\$91.89
I=PRT
But NOT I=175 * 0.035 * 5 = \$30.65 ???

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3. 👁
1. 175 * 0.035 = 6.13 int. yr 1 so now 181.13
181.13 + 175 = 356.13 * 0.035 = 12.46 int. yr 2
etc, remember principal has increased each year

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2. 👎

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