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insens350 [35]
3 years ago
14

A bank advertises that they will pay 1.5% simple annual interest on new savings accounts. Lorenzo puts $400 in a new account. If

he does not deposit it withdraw money, how much will he have altogether after one year?
Mathematics
1 answer:
Luba_88 [7]3 years ago
3 0

Answer:

  $406

Step-by-step explanation:

The amount of interest that Lorenzo's account earns is given by ...

  I = Prt

where P is the principal amount ($400), r is the annual rate (1.5%) and t is the number of years (1).

Lorenzo's interest is ...

  I = $400·0.015·1 = $6.00

Then the balance in Lorenzo's account at the end of one year is ...

  $400 +6 = $406.00

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Answer:

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Step-by-step explanation:

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