Question

Mr. Palmer deposited $850 into a simple interest account for 8 years, earning at an 8% interest rate. What will his total balance be when he checks it? I do not want a link. I do not want a link. I do not want a link. I do not want a link. I do not want a link. I do not want a link. I do not want a link.

a.723.29
b. 1,394.00
c. $1,573.29
d. $68.00

Answer 1

solution given:

principal [P]=$850

time[T]=8years

rate[R]=8%

now

simple interest [S.I.]=
`(P×T×R)/(100)` =$
`(850×8×8)/(100)` =$544

so

Total balance=S.I.+P=$544+$850=$1394.

option b.$1,394.00 is your answer