Question

Ashley has $200 in a savings account that earns 4% interest per year. Which is closest to the amount that will be in her account after 5 years if no withdrawals or deposits

Answer 1

Ashley will save $240.

Step-by-step explanation:

First we convert 4% into a decimal, 0.04.

The formula for solving for interest is A = P(1 + rt).

$200(1 + 0.04 × 5) = $240

This interest is $40, and our full amount is $240.

Answer 2

Ashley will save $240.

Explanation:

First we convert 4% into a decimal, 0.04.

The formula for solving for interest is A = P(1 + rt).

$200(1 + 0.04 × 5) = $240

This interest is $40, and our full amount is $240.