Question

You deposit $4500 in an account that earns 2% per year simple interest. The

Answer 1

Answer:

based on the given formula the amount calculated is for the beginning of the year.

substituting 1 you get 4500 which is beginning of the year 1 when you deposited.

based on that logic substituting 7 for beginning of year 7 will be

4500 + 6 * 0.02 * 4500

4500 + 540

5040

option A.