Question

Olivia deposited $800 at her local credit union in a savings account at the rate of 6.2% paid as simple interest. She will earn interest once a year for the next 7 years. If she were to make no additional deposits or withdrawals, how much money would the credit union owe Olivia in 7 years?

Answer 1

Answer:

$1,147.20.

Explanation:

The total amount accrued for principal plus interest in the calculation simple interest

= principal * (1+ rate * number of years)

= $800 *(1+ 6.2% * 7)

= $1,147.20.