Question

Suppose you deposit $250 in a new savings account paying an annual yield of 3% interest. If the account is left alone how much money will be in the account at the end of 5 years?

Answer 1

I think

$287.5

Explanation:

3% = 0.03

250×0.03 = 7.5

7.5×5 (years) = 37.5

37.5+250 = 287.5