Question

Calculate the ending balance of your savings account if you deposit $400 and earn simple interest a 7% for five years.

Answer 1

Okay well 7%, changes into 7/100=0.07 and there are 5 years and you have the beginning amount of 400. So 400×0.07=28. 28×5= 140. So add 140 to the be amount, 400+140=$540. Answer is $540.