Question

Kristen has $850 to put in a savings account that earns 4% simple interest each year. How much will be in her account after 6 years?

Answer 1

$1054

Explanation:

simple interest = 4% of original amount each time

850/100 = 8.5 = 1%

8.5 x 4 = 34 = 4%

34 x 6 = 204

$850 + $204 = $1054