Question

Bonnie deposits $120.00 into a new savings account.

The account earns 3.8% simple interest per year.

No money is added or removed from the savings account for 4
years.

What is the total amount of money in her savings account at the end
of the 4 years?

A $4.56
B $18.24
C $124.56
D $138.24

PLEASE SHOW WORK

Answer 1

120.00•3.8=18.24
18.24+120=138.24

Answer=D.

Answer 2

Simple interest formula: principle x interest rate x time

120 x 3.8% x 4= $18.24

ANSWER= B