Question

How do you get $3,960 as answer for the question, Misty deposits $3,600 in a bank account that pays 2% simple interest. If she doesn't change the principal, what will her balance be in 5 years?

Answer 1

Because 2 percent as a decimal is .02 so times that by the annual amount 5 years and you'd get 10. Then you times it with your original amount 3600 and get 360 . then you add them together 3600 and 360 and get 3960