Question

You are starting a savings account for college. You put

$1,000 in as your starting balance. You earn simple
interest at 10% every year. You also must pay 30%
income tax on the interest earned annually. Calculate
the interest, balance, tax paid, and the overall balance
of the account after taxes. To break the code determine
the accounts overall balance for year 5 after taxes after
been paid.

Answer 1

Answer: $4,000

Explanation:

If you have $1,000 dollars, and take ad ten percent ($100) interest you would get $1,100. But If you take away 30 percent ($300) away from 1,100 dollars you would get $800 dollars. The over all balance on the account after five years is, $4,000.

Hope this answer helps! :)