Question

Billy deposits $800 in a local bank. He knows his money will be increased by 5% at the end of 1 year. How much money will he have at that time?
$840


$880


$882


$1,680

Answer 1

Answer is $840

$800 * 0.05 * 1 = $40 ...interest

$800 + $40 =$840

Answer 2

Basic math, of interest. He starts with 800 and gains 5% each year. 5% of 800 is 40.

800 + 40 = 840.