Question

An account pays 7% per year simple interest. In year 1, the amount in the account is $950. How much is in the account in year 6?
a.$1316.27B.$1282.50C.$1256.50D.$1332.42

Answer 1

Period for pay = 5 years
% interest = 7%
Principal amount = $950

Amount of Interest 

7/100 × 950 ×5
   = $332.50

Amount after interest
 
$950 + 332.50 = 1282.50


Answer = $1282.50