Question

To be able to buy a new computer, Yoko decides to save for 5 years. She opens a savings account with $400. The account pays simple interest at an annual rate of 2%. She doesn't make any more deposits.
(a) How much total interest will Yoko earn?
(b) What will the total amount in the account be (including interest)?

Answer 1

Answer:

A)  $40 total interest

B) $440