Question

Willie wants to save for a new racing bike. If he deposits $250 in a savings account at 4% simple annual interest, what will his balance be after 3 years?.

Answer 1

280$

Step-by-step explanation:

calculations ez

Answer 2

He deposit $250 in savings at 4% annual innterest. After 3 years 250$ have grown but how much.

Answer:
4% in decimal is 0,04 but since we are getting more money and not less, we plus 0,04 with 1 which is 1,04.

And now we now after 1 year. We multiply 250$ with 1,04.

But if we want 3 years we multiply 250$ with 1,04 three times.
Result:
250$ * 1,04 * 1,04 * 1,04 = 281,216$