Question

Which of the following equations represents the value of a savings account at the Owl Credit Union at Dundalk High School that has an initial
deposit of $250 and pays an annual interest rate of 2%?

Answer 1

Answer:

Step-by-step explanation:

Given

Initial deposit (Principal)= $250

Rate = 2%

Time = 1year (annual interest)

Required

Amount after 1 year

First we need to calculate interest

Interest = PRT/100

Interest = 250*2*1/100

Interest 2.5 * 2

Interest = $5.0

Next is to calculate amount;

Amount = Principal + Interest

Amount = $250 + $5

Amount = $255

Hence the value of a savings account at the Owl Credit Union at Dundalk High School that has an initial  deposit of $250 and pays an annual interest rate of 2% is $255.

Amount = P + I