SOLUTION: Your favorite aunt put money in a savings account for you. The account earns simple interest; that is, it increases by a fixed amount each year. After 2 years your account has $825

Algebra ->  Linear-equations -> SOLUTION: Your favorite aunt put money in a savings account for you. The account earns simple interest; that is, it increases by a fixed amount each year. After 2 years your account has $825      Log On


   

Question 715581: Your favorite aunt put money in a savings account for you. The account earns simple interest; that is, it increases by a fixed amount each year. After 2 years your account has $8250 in it and after 5 years it has $9375.
This is a substitute problem and not the actual problem I have to solve (the numbers are different)
I would really like to figure out how to solve the problem. I am currently drawing a blank.
Thank you so much.
Answer by KMST(5328) About Me  (Show Source):
You can put this solution on YOUR website!
After 2 years your account has $8250.
After 5 years it has $9375.
Over the 3 years in between,
the account balance increased by $9375-$8250=$1125
The yearly increase was
$1125%2F3=$375
The increase in the first 2 years was
$375%2A2=$750
The initial deposit was
$8250-$750=$highlight%287500%29
The interest earned as a fraction of the initial deposit is
375%2F7500=5%2F100=0.05
which means that the fixed simple interest was highlight%285%29%.