Question

Benjamin invest 400 in savings account that earns 5% each year

Answer 1

Benjamin will make 800$

Explanation:

400/5% 400 dollars divided by each year

5%=.5 5 percent is equal to .5

400/.5=800 400 divided by 5 is 800

He will make 800$ a year

Answer 2

400⋅(1+0.05)⋅(1+0.05)⋅(1+0.05)

Explanation:

I believe this is the question-

Benjamin invests $400 in a savings account that earns 5% interest each year.

Which expression gives the balance in the account after 3 years?

Choose 1 Answer:

a. 400(1+0.05)(1+0.05)(1+0.05)

b. 400+(1+0.05)(1+0.05)(1+0.05)

c. 400⋅0.05⋅0.05⋅0.05

d. 400+0.05⋅0.05⋅0.05

Growth at a rate of 5% means that their savings keep their 100% with 5% more. (1+0.05)

After 0 years (i.e., now), the balance is 400 dollars.

400⋅(1+0.05)- Simply do this three times!

Hope this helps.