Question

Paloma opened a savings account with a deposit of $750. She earns 2% simple interest per year on the account. What will the total amount of money, in dollars, in palomas account after 1 year if there are no other deposits or withdrawals ?

Answer 1

$765

Explanation:

Given data

Principal= $750

Rate= 2%

Time= 1 year

The simple interest expression is given as

A=P(1+rt)

substitute

A= 750(1+0.02*1)

A= 750(1.02)

A= $765

Hence the final amount is $765