Question

Rosa deposits $5000 in a savings account that gets compounded interest annually at a rate of 8%. If she leaves her money in the account for 2 years, how much will she have at the end of that time?

Answer 1

$5318

Explanation:

First, converting R percent to r a decimal

r = R/100 = 4%/100 = 0.04 per year,

then, solving our equation

I = 2650 × 0.04 × 3 = 318

I = $ 318.00

The simple interest accumulated

on a principal of $ 2,650.00

at a rate of 4% per year

for 3 years is $ 318.00.