Question

Juliet opened a savings account at a bank by depositing $75. The account earns simple interest at a rate of 4% per year. The money has been in the account for 5 years, and Juliet has not made any more deposits or withdrawals. How much money is in Juliet’s account?

A) $270.00
B) $78.00
C) $80.00
D) $90.00

Answer 1

The money has been in the account for 5 years. This means that the amount of deposit was increased for 5 times.
75*1.04*1.04*1.04*1.04*1.04=75*1.04^5≈91.3 $
In this way i prefer to chose D) $90.00 beacuse it's the nearest number