To calculate simple interest, you first need to multiply the original amount by the percentage of the money which is going to be added.
In this situation, 500 x 0.05 is the interest which will be added each year.
Therefore, $25 will be added each year. Since it is over 4 years, it is (25*4).
So the account will have earned $100 of simple interest.
Although the account will contain $600, it will have EARNED $100 of interest since it started with $500 already.
Answer - A $100 of simple interest will be earned.
Question 8
It should be D) $101.35
Question 9
It should be C) It will always be less then the divisor
Question 10
It should be A)
Question 11
It should be C) 5 and 9
Question 12
It should be C) y=9x-4
Question 13
It should be A) (0,1)
Question 14
It should be D) The water starts off cold and then gets hotter
Question 15
It should be D) 7.2
$60 - $10 = $50
$50 / 20 = $2.5 ea.
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