Chelsea deposits $600.00 into a bank account and is earning 8.5%simple interest. She decides to keep the account for 4 years. a) How much interest would the account have made after the 4 years?

Step-by-step explanation:

If she deposited $600 and had $621.60 after four years, then she earned: $621.60 - $600 = $21.60 in four years. It means in one year she earned $21.60 ÷ 4 = $5.40. Now we have to find out how many percent of $600 is $5.40:

$5.40 = x% from $600

5.4 = x/100 * 600

5.4 = 600x/100                 / * 100 (both sides)

540 = 600x                       / ÷ 600 (both sides)

x = 0.9

So the interest rate was 0.9% annually.

Now we have to find out how much is 0.9% from $1100:

$1100 * 0.9% =

= 1100 * 9/1009 =

= 9900/1000 =

= 9.9

It means in one year she would earn $9.90. After 7 years she would earn $9.90 * 7 = $69.30, so she would have in her account:

$1100 + $69.30 = $1169.30

or