Question

1

You deposit $500 in a savings account. The account earns 2% simple interest per year.
a. What is the interest earned after 8 years?
The interest earned is $
after 8 years
b. What is the balance after 8 years?
The balance is $
after 8 years

Answer 1

It depends if you are adding more money into the account or not

Answer 2

Hi there!

Convert 2% into...

`2=100`

Divide both terms together:

`500`÷
`100=5`

Multiply 5 by 2...

`5`·
`2=10`

Multiply terms with terms...

`10`·
`8=80`

A. $80, the interest earned is $80 after 8 years...

Add $500 with $80:

`500+80=580`

B. $580, the balance is $580 after 8 years...