Question

How do I solve this? Will fan and Medal!!!

Piper Deposited $734.62 in a savings account that earns 2.6% simple interest. What will be Pipers balance in 7 years?

a.$133.70
b.$1,337.01
c.$753.72
d.$868.32

Answer 1

Piper started off with $734.62 in the bank account, and will annually earn 2.6%. Thus, in seven years you can expect the interest to be : \[\large $734.62 \times 0.026 \times 7 \approx $133\]

Then add that to the balance that Piper started with
\[\large $734.62 + $133 = $867.62\]

Answer 2

Thanks :D

Answer 3

You're welcome :)