Question

Amanda has $5200 in a savings account that earns 4% annually. If the interest is not compounded, what is the value of her account in 5 years?

A. $208

B. $1040

C. $5408

D. $6240

Answer 1

The interest is simple
A=5,200×(1+0.04×5)
A=6,240

Answer 2

First thing you do is to start off with 5200, and if she earns 4% each year for the next 5 years, she would earn a total of 20% more than what she had now.

Then you would have to multiply 5,200 by 1.20 Which equals 6,240.

Answer:
D. $6240

Hope this helps!