Question

Elizabeth’s aunt started a college savings account for her with $6,000. What is the balance of the account after 5 years if the simple interest rate is 2.5%

Answer 1

6750

Explanation:

simple interest = P×r%×t

P = $6000

r = 2.5%

t = 5 years

I = 6000 × 2.5/100 × 5

= 750

6000 + 750 = $6750