Question

Suppose that $1450 is deposited into an account paying simple interest of 8% annually. At the end of seven (7) years, the account will be worth _____________

Answer 1

Answer:

Total worth= $2,262

Explanation:

Simple interest is the amount charged on a loan or the interest a person gets for keeping his money in the bank, it is a fixed percentage over a period of time.

The simple interest formula is given by

Interest = Principal* Interest rate* Time in years

Interest= 8%= 0.08

Principal = $1,450

Time = 7 years

Interest = 1,450* 0.08* 7

Interest= $812 earned in 7 years

The total worth of the account will.be the principal plus the interest earned

Total worth= 1,450+ 812

Total worth= $2,262