Question

Mr. Jansen opened a savings account with an initial deposit of $720 and will not make any additional deposits or withdrawals. The account earns 1% simple interest. What is the total amount that Mr. Jansen will have in his account at the end of 3 years?

a. $741.60

b. $ 21.60

c.$936.00

d. $784.80

Answer 1

A: $741.60

Explanation:

If the account earns 1% interest, then we will do the following:

[YEAR 1] $720 x 1.01 = $727.2

[YEAR 2] $727.2 x 1.01 = $734.5

[YEAR 3] $743.5 x 1.01 = $741.60

Final Answer: $741.60

Answer 2

a $741.60

Explanation:

720 × 1.03( add the one on so we can make it a one step problem) = 741.6, meaning, the answer is a $741.60