Question

An account pays 8% per year simple interest paid a new one, the amount in the account is $850. How much is the account in year 6?

Answer 1

1258 is the answer.

Answer 2

1258

Explanation:

SI = (P x R x T) / 100

SI = Simple Interest

P = Principal

R = Rate

T = Time

SI = (850 x 8 x 6)/100

=> SI = 85 x 8 x 6 /10

=> SI = 680 x 6 /10

=> SI = 68 x 6

=> SI = 408

The total amount after 6 years = Principal + Simple Interest

=> Total Amount = 850 + 408

=> Total Amount = 1258

After 6 years, the amount in account is 1258.