Question

Mrs. Scott opened an account with a deposit of $1,750. The bank pays 5% annual simple interest on this account. Mrs. Scott makes no additional deposits or withdrawals. How much interest will the account have earned at the end of 2 years?

Answer 1

At the end of two years Mrs.Scott earned $1929.36 (i rounded the dec.)

Explanation:

A= p(1+r)^t

P= 1750

r= .05

t= 2

A= 1750(1+.05)^2

A= 1929.375