SOLUTION: If I invested $1000.00. What would that money grow to in 18 months at a 5.5% interest rate

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: If I invested $1000.00. What would that money grow to in 18 months at a 5.5% interest rate      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 870581: If I invested $1000.00. What would that money grow to in 18 months at a 5.5% interest rate
Answer by JulietG(1812) About Me  (Show Source):
You can put this solution on YOUR website!
It depends upon how the interest is calculated. If it is simple interest, compounding annually, then the total interest for the first year is 1000 * .055, or $55. In the second year, the interest would be 1055 * .055, or $58.03. Half of that (6 months) is $29.01. Added to the principal and already earned interest, $1084.01.