Question

Carl has $500 in a saving account that pays 5% simple interest. What is the total amount of money Carl will have in his bank account after 3 years if he leaves his money in the bank?

A. $75
B. $575
C. $750
D. $7,500​

Answer 1

B

Explanation:

5% of 500 = 25

5% of 525 = 26.25

5% of 551.25 = 27.56

This ends up being exactly $578.81 but for this example it would be simplified to $575

Explanation:

Answer 2

B

Explanation:

5% of 500 = 25

5% of 525 = 26.25

5% of 551.25 = 27.56

This ends up being exactly $578.81 but for this example it would be simplified to $575