Question

$100 is

the principal
deposited in a savings
account with a simple
interest rate of 5%.
The same amount of
$100 is placed in a 5%
savings
account
compounded annually.
What will be the total
balance of both
accounts after 5 years?

Answer 1

$125

Explanation:

We know that:

`P=100`

R = 5%

`T=5`

Substitute:

`P=100`

R = 5% into formula

T = 5

`F=P+Prt\\ F=100+100rt`

Calculate:

`100*(1+5*0.05)`

Calculate the product or quotient:

`100*(1+0.25)`

Calculate the sum or difference:

`100*1.25`

Calculate the product or quotient:

`125` (ANSWER)

Alternative forms:

`1.25*{10}^2,5^3`

I hope this helps you!!!!!