Question

Mrs Lee had $7500 in her bank account. The bank paid 4% interest at the

end of each year. How much did she have in the bank at the end of 1 year?

Answer 1

$7800

Explanation:

1. Principal x interest x rate

So: $7500 + 4% (0.04) x 1 year = $300

2. Interest + Principal

So: $7500 + $300

Mrs Lee had $7800 in the bank.