SOLUTION: Tyler deposited $100 into a savings account for 6 years. The account earns 5% simple annual interest. 1. How much money will Tyler have earned in interest at the end of 6 years?

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Question 1008128: Tyler deposited $100 into a savings account for 6 years. The account earns 5% simple annual interest.
1. How much money will Tyler have earned in interest at the end of 6 years?




2. What is the total value of Tyler’s savings after six years?
Answer by fractalier(6550) About Me  (Show Source):
You can put this solution on YOUR website!
Since simple interest is found by
I = prt we have
I = (100)(.05)(6) = $30
That is if the interest is not compounded year to year.
The total he will have in the account would then be $130.
If it IS compounded, the numbers are $34.01 and $134.01.