Question

Kevin invested his winnings of 8,900 in an account that earns a simple interest of 4% per year. For the next five years, he neither deposited nor withdrew any amount. How much money will Kevin have in the account after the period?

Answer 1

Vn=Px(1+i)^n
=> V5=8900x(1+0.04)^5

Answer 2

$10680

Explanation:

we find the simple interest each year, which is 8900×0.04=$356

then, add the total interest with the original value.

8900+356(5)=$10680