In year 1 : $850
Simple interest = P * n * r
P = $850, n = 1 ( one year ), r = 8% = 0.08
850 * 1 * 0.08 = $68 ( interest for one year)
In year 6 the amount is:
850 + 5 * 68 = 850 + 340 = 1190
Answer:
A ) $1190.00
Answer:
Amount in year 6 = $1190
Step-by-step explanation:
An account pays 8% per year simple interest. In year 1, the amount in the account is $850.
Simple interest formula= P*n * r
P- principal amount= 850
n - number of years= 1
r - rate of interest 8%= 0.08
Simple interest I = 850 * 1* 0.08 = 68
Interest for 1 year = $68
Interest for 5 years = 68* 5 = 340
Amount in the account in year 6 = amount in the account + interest for 5 years
= 850 + 340 = 1190
