Question

LI

1. Mrs. Baxter deposits
$2,000 in an account that
earns 5% simple interest.
How much is Mrs. Baxter's
investment worth after 8
years? simple or compound
​

Answer 1

simple i think?

Step-by-step explanation:

im not sure but i think its simple interest because it says she earns 5% simple interest. just a guess though.

Answer 2

$2,800, simple interest

Step-by-step explanation:

The formula for simple interest is I = PRT, where I is the interest (earned or paid), P is the principal amount invested/borrowed, R is the rate in decimal form, and T is the time in years.

I = (2000)(0.05)(8)

I = $800

Then we add that to the principal to get $2,800