Question

Maria deposited 1200 in savings account for 5 years. The

interest rate is 4. 5%. What will be total balance in her account

after 5 years.

Answer 1

compound interest would be,

1495.91

and simple interest would be,

1470

Explanation:

compound interest would look like,

1200 x 1.045 x 1.045 x 1.045 x 1.045 x 1.045

and simple interest would look like,

1200 x 0.045 = 54 = 4.5%

54 x 5 = 270

1200 + 270 = 1470