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You put $250 in an account that earns 4% interest per year. What is the balance of the account after 5 years?

User Cherice
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2 Answers

5 votes

Answer:

The answer is 300 dollars

Explanation:

User Romanlv
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3.2k points
6 votes

Answer:

$300

Explanation:

the first step is to work out how much 1% is. to do this divide the total by 100

250 ÷ 100 = 2.5 (= 1%)

Now, as person gains 4% every year, multiply 2.5 by 4

2.5 x 4 = 10 (how much they gain each year)

as we are trying to work out how much after 5 years, multiply 1 years amount by 5

10 x 5 = 50 (how much they will gain after 5 years)

$250 + $50

= $300

I hope this helped :-)

User Barrard
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3.1k points