Question

Ahab has a savings account with $4,000 in it that earns 7% simple

interest per year.
How much money, to the nearest penny, will Ahab have in 5 years?

Answer 1

In 5 years Ahab will have $ 5,400.

Explanation:

Given that Ahab has a savings account with $ 4,000 in it that earns 7% simple interest per year, to determine how much money, to the nearest penny, will Ahab have in 5 years, the following calculation must be performed:

4,000 + (4,000 x 0.07 x 5) = X

4,000 + (280 x 5) = X

4,000 + 1,400 = X

5,400 = X

Therefore, in 5 years Ahab will have $ 5,400.