Question

You have $1,000 of birthday money in a savings account that earns 8% simple interest. If you have not spent any of it for 5 years, what is your TOTAL balance? (Balance = Principal + Interest)​

Answer 1

Your Balance Would Be $1400.

How I Found The Answer:

$1000 Is 100%

$1000 ÷ 100 = $10

$10 Is 1%

$10 × 8 = $80

$80 × 5 = $400

$1000 + $400 = $1400

Your Balance Would Be $1400.