Question

Shamika's grandmother opens an account with a deposit of $5,000 for Shamika as a college savings account. The account pays 5 percent annual interest. How much money will be in the account after 10 years?

Answer 1

$7500

Explanation:

$5000 was deposited

5% annual interest of the $5000 is $250

so in ten years the interest will be 10 ×$250 =$2500

so the total sum that will be in the account is $5000 + $2500 =$7500