Question

Lily deposited $600 in an account that earned 4.2% simple interest. Se did not make additional deposits and she didn't withdraw any money from the account.

What was the balance in Lily's investment account after 5 years?

Answer 1

$726.00

Explanation:

A = 600(1 + (0.042 × 5)) = 726

A = $726.00

The total amount accrued, principal plus interest, from simple interest on a principal of $600.00 at a rate of 4.2% per year for 5 years is $726.00.

Hope this helped

Answer 2

726

Explanation:

The simple interest formula is as follows

AV=PV(1+it)

At time four this means that we have

AV=600(1+.042*5)

600*1.21= 726