Question

If the APY of a savings account is 5.3%, and if the principal in the savings account is $5100 for an entire year, what will be the balance of the savings account after all the interest is paid for the year?

A. $5300.00
B. $5127.03
C. $5100.00
D. $5370.30

Answer 1

the answer is D. hope this helps

Answer 2

Option D - $5370.30

Explanation:

Given : If the APY of a savings account is 5.3%, and if the principal in the savings account is $5100 for an entire year.

To find : What will be the balance of the savings account after all the interest is paid for the year?

Solution :

First we find the interest he paid.

The interest formula is
`I=P* R* T`

Where, P is the principal P=$5100

R is the rate of interest R=5.3%=0.053

T is the time T=1 year

Substituting the values,

`I=5100* 0.053* 1`

`I=\$270.3`

The balance of the saving account is the sum of interest paid and principal value.

Amount = Interest +Principal

Amount = $270.3 +$5100

Amount = $5370.3

Therefore, Option D is correct.