Question

Maya deposits $500 in her savings account and earns a simple interest of 5 percent. What will be the balance in her account after two years?

A. $1,000
B. $550
C. $600
D. $577.50
E. $527.50

Answer 1

B. $550

Step-by-step explanation:

`A = p(1 + (r)/(100) ) {}^(n) \\ = 500(1 + (5)/(100) ) {}^(2) \\ = 550 \: dollars`