Question

How much does the refrigerator cost?

Answer 1

Answer: $535

Step-by-step explanation

He will be able to buy the refrigerator with the amount he deposited ($500) plus the interest generated from it ($35)(which we get by doing the following):

So the formula for interest is

Interest = (principal ×interest rate × time for which the money was deposited) / 100

Interest = ?

Principal = $500

Interest rate = 7%

Time = 1 year

Now

Interest = (500 × 7 × 1) / 100

Interest = 3500/ 100

Interest = $35

So the refrigerater's cost = 500 + 35

Cost = $ 535