Question

Kirsten invested $1800 in an account paying 2% simple interest. What was her account balance after 5 years?

Answer 1

Answer:

$1,980

Step-by-step explanation:

We can use the simple interest formula for this:

$A = P (1 + rt)$

P = initial balance

r = annual interest rate

t = time

First, change 2% into its decimal form:

2% -> $\frac{2}{100}$ -> 0.02

Now, lets plug the values into the equation:

$A=1,800(1+(0.02)(5))$

$A=1,980$

The account balance after 5 years is $1,980