Question

Ms. Anderson deposits $7,000 into a savings account that pays a simple interest of 2% per year. Which of the following would be the total amount in her savings account at the end of 3 years?

Answer 1

$7,428.46

Explanation:

A = 7000(1 + .02)³

A = 7000(1.02)³

A = 7000(1.0612)

A = $7,428.46