Question

You have $2000 from graduation that you want to invest in your simple interest checking account for five years while you go to college. If the account has a 1.3% interest rate, how much will you have in the account after the five years?

Answer 1

Answer: $2130

Explanation:

First, we need to calculate the simple interest which will be:

= (Principal × Rate × Time)/100

= (2000 × 1.3 × 5)/100

= $130

The total amount in the account after five years will be:

= $2000 + $130

= $2130