Question

Willie wants to save for a new racing bike. if he deposits $250 in a saving account at 4% simple annual interest, what willis balance be after 3 years?

A.15
B.30
C.265
D.280

Answer 1

The formula is
A=p (1+rt)
A future value?
P present value 250
R interest rate 0.04
T time 3years
A=250×(1+0.04×3)
A=280

Hope it helps!

Answer 2

To find how much he gets a year, we multiply 250 by 0.04. He gets 10 dollars the first year. for year 2, we multiply 260 by 0.04 to get 10.4. Do the same to 270.4 to get 281.22. I'd only have to assume you don't get interest off of interest, so it'd round down to 280.