Question

Nasser invested $550 at 6% simple interest for 5 years. What was his investment worth after 5

years?
O A. $583

B. $715

C. $883

D. $905

Answer 1

B. $715

Explanation:

By multiplying your starting value, in this case $550, and your (simple) interest, 6%, or by 1.06 as 0.06 being your interest value and the 1.00 accommodating your starting value you will multiply, $550 × 1.06 = $583. Repeat these steps for however many years you are account for, in this case, five years. Giving you a total of $715