Question

Six years ago, Kelsey opened a savings account that earns 1.2% simple interest every year. She started the account with $600 and has not touched the account since. How much money is in the account now? Show Work!

(A) $43.20
(B) $643.20
(C) $4,320.00
(D) $4,920.00

Answer 1

600 times .012=7.20

7.20 times 6= 43.20

43.20+ 600= 643.20

the correct answer is b- $643.20

Answer 2

The final amount left in her bank account=$643.2

Answer: Option(b)

Given:

Principle P=$600

Rate r= 1.2%

Time t= 6 years

To find:

Amount left in her account

Step by Step Explanation:

Solution;

Formula used for calculating Amount is given as

`\text {Amount}=P+\text { simple Interest }(S I)`

Where P=Principal Amount invested

SI=Simple Interest

And also formula used for calculating Simple Interest is

`\text { Simple Interest }=(P N R)/(100)`

Where P=Principal Amount

N=No of years

R=Rate of interest

Substitute this equation in the above main equation we get

`\text { Amount }=P+\text { simple Interest }(S I)`

`\text { Amount }=P+\left[(P N R)/(100)\right]`

`=600+\left[(600 * 1.2 * 6)/(100)\right]`

= 600 + 43.2 = 643.20

Result:

Thus the final amount left in her bank account at the end of 6 years is $643.2