Question

Austin has $550 to invest in his bank account, which earns interest at a rate of 7% annually. How much money will Austin have in his account after 10 years

Answer 1

Answer: $935

Step-by-step explanation:

Step 1: we calculate the interest.

Simple interest(I) = Principal x Rate xTime

From the question, Principal= $550

Rate = 7% means 7/100 = 0.07

Time = 10 years

Slot the values into the formula:

I = 550 x 0.07 x 10

I = $385

Step 2: add the Interest to the initial Principal

Total money in Austin's account after 10 years will be (385 + 550)

= $935

I hope this helps.