Question

An account pays 7%per year simple interest. In 1 year, the amount in the account is 950. How much is in the account in year 6

Answer 1

The answer is 1282.50

Explanation:

Answer 2

First year's interest is already given.

There are 5 more payments of interest

= 5 * 0.07 * 950 = 332.5

so amount in the account after 6 years = 950 + 332.5 = 1282.5