Question

Ernie deposits $9,800 into a pension fund. The fund pays a simple interest rate of 7% per year. What will the balance be after four years?

Round your answer to the nearest dollar.

Answer 1

$13,745

Explanation:

$9,800 + 7% = 10,486

$10,486 + 7% = 11,220.02

$11,220.02 + 7% = 12,845.800898

$12,845.800898 + 7% = 13,745.00696086

round to nearest dollar = $13,745

Answer 2

$12544

Explanation:

9800×0.07=686

686×4=2744

2744+9800=12544