Question

Cody has $700 in a savings account that pays 4% simple interest what is the amount of money Cody will have in his back account after 2 years if he leaves his money in the bank

Answer 1

I₂ = 757.12$ (after two years)

Explanation:

When the realized interest is added to the basic investment at the end of each year, we use the following formula:

I₂ = I ( 1 + (r/100))² for two years

I₂ = 700 ( 1 + (4/100))² = 700 · 1.04² = 700 · 1.0816 = 757.12$

I₂ = 757.12$

God with you!!!