Question

You put $4,000 in a savings account. The account earns 5.25% simple interest per year. What is the total balance after 5 years?

Answer 1

$5,050.00

Explanation:

Principal: $4,000

rate: .0525

time: 5 Years

Interest:

I = Principal * rate * time

I = $4,000 × 0.0525 × 5 = $1,050.00

Total balance:

Principal + Interest

$4,000 + $1,050.00 = $5,050.00