Question

You put $800 in a savings account. The account earns 4% simple interest per year.

a. What is the interest earned after 5 years?

The interest earned is $__ after 5 years.

b. What is the balance after 5 years?

The balance is $__ after 5 years.

Answer 1

A. 160

B. 960

Explanation:

The interest earned after 5 years is the balance - the initial balance: 160

The balance is 800 * (1 + .04*5): 960