Question

A student put $1,200 in a savings account paying simple interest of 4.5% per year. Find the total amount of the student's savings after 5 years. A: $700. B: $1470. C: $1000. D: $400​

Answer 1

(B) $1470

Explanation:

Given that the principal initial amount, p=$1200

Rate of simple interest per year, r=4.5% = 0.045

Time, t=5 years

Interest after 5 years,

I=prt= 1200 x 0.045 x 5 = 270

Total amount = Principal initial amount + Interest

=1200+270=1470

So, the total amount of the student's savings after 5 years is $1470.

Hence, option (B) is correct.