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$1200 is increased by 10% for two years with simple interest. The total balance at the end of the two years is:

User Warrickh
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1 Answer

1 vote

Answer:

$1440

Explanation:

The amount (A) in the account is ...

A = P(1 +rt)

where P is the principal invested, r is the interest rate, and t is the number of years. Filling in the given values, we find ...

A = $1200(1 +0.10·2) = $1440

The balance at the end of 2 years is $1440.

User Exalted Toast
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