You are given
an investment of $5000 with a rate of 5.5% per year simple interest. You are
required to get the total interest money after 5 years. Simple interest is the money
that you can earn by investing initially some money. The percentage of the
principal makes your investment grow. The simple interest formula is equal to
the principal starting money multiplied by the interest rate and the time
borrowed in years.
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F = P (1+rn)
F = ($5000)[1+(0.055)(5)]
F = $6375
