Question

An account earns 6% yearly compound interest if you put $1500 in the account what is the ending balance after 5 years

A. $1950.00
B. $450.00
C. $2007.34
D. $507.34

Answer 1

6% if 1500 is 90x5=450
total 1500+450=1950

Answer 2

B. $450.00

Explanation:

1. 1500 x 6% or 1500 x .06 = 90

2. 90 yearly compound times 5 years(90x5)

90x5=450.00