Question

Six years ago, Kelsey opened a savings account that earns 1.2% simple interest every year. She started the account with $600 and has not touched the account since. How much money is in the account now? Show Work!
(A) $43.20
(B) $643.20
(C) $4,320.00
(D) $4,920.00

Answer 1

Answer:

600 times .012=7.20

7.20 times 6= 43.20

43.20+ 600= 643.20

the correct answer is b- $643.20

Answer 2

The final amount left in her bank account=$643.2  

Answer: Option(b)

Given:

Principle P=$600

Rate r= 1.2%

Time t= 6 years

To find:

Amount left in her account

Step by Step  Explanation:

Solution;

Formula used for calculating Amount is given as

$\text {Amount}=P+\text { simple Interest }(S I)$

Where P=Principal Amount invested

SI=Simple Interest

And also formula used for calculating Simple Interest is

$\text { Simple Interest }=\frac{P N R}{100}$

Where P=Principal Amount

N=No of years

R=Rate of interest

Substitute this equation in the above main equation we get

$\text { Amount }=P+\text { simple Interest }(S I)$

$\text { Amount }=P+\left[\frac{P N R}{100}\right]$

$=600+\left[\frac{600 \times 1.2 \times 6}{100}\right]$

= 600 + 43.2 = 643.20

Result:

Thus the final amount left in her bank account at the end of 6 years is $643.2