Question

At the beginning of year 1, Matilda invests $450 at an annual simple interest rate of 5%. She makes no deposits to or withdrawals from the account. Which explicit formula can be used to find the account's balance at the beginning of year 15? What is the balance?

Answer 1

A(n) = 450 + (n – 1)(0.05 • 450); $765.00

Answer 2

$765

Explanation:

`interest \: = (prt)/(100) \\ = ((450)(5)(14))/(100) \\ = 315 \\ total \: money \: = 315 + 450 \\ = 765`