Question

· Abigail has $356 in her bank account. She earns simple interest on her money at a rate of 3% per year for a total of fiveyears.What was the new balance of the account at the end of the 5 years?A $625B$409.4c) $250.37D $37.50

Answer 1

We know that the simple interest formula is:

`Y=P(1+rt)`

So we can replace the information given so:

`\begin{gathered} Y=356(1+0.03\cdot5) \\ Y=356(1.15) \\ Y=409.4 \end{gathered}`

So is option B