Question

$12,000 is deposited into a savings account for 2 years at a simple interest rate of 1.5%. How much is in the account at the end of the 2 years?

a) $12,360
b) $12,360.30
c) $12,180
d) $12,180.30

Answer 1

The amount in the account at the end of 2 years is $12,360. Hence, a) is correct.

Step-by-step explanation:

To calculate the amount in the savings account at the end of 2 years, we use the formula for simple interest:

Simple interest = Principal × Rate × Time

In this case, the principal amount is $12,000, the rate is 1.5%, and the time is 2 years.

So, the amount in the account at the end of 2 years is:

$12,000 × 0.015 × 2 = $360

Therefore, the total amount in the account at the end of 2 years is $12,000 + $360 = $12,360