Question

Mrs Lee had $7500 in ur bank account. The bank paid 4% interest at the end of each year. How much did she have in her bank at the end of 1 year

Answer 1

at the end of 1 year he will have $ 7800 in his bank account

Explanation

To calculate simple interest, multiply the principal amount by the interest rate and the time.

$\begin{gathered} A=P(1+rt) \\ where \\ A\text{ is the final amount} \\ P\text{ is the principal/initial amount} \\ r\text{ is the rate \lparen}in\text{ decimals\rparen} \\ t\text{ is the number of periods} \end{gathered}$

Step 1

Given:

$\begin{gathered} P=\text{ \ 7500} \\ rate=\text{ 4\%=}\frac{4}{100}=0.04 \\ time=1\text{ \lparen 1 year\rparen} \end{gathered}$

replace in the formula

$\begin{gathered} A=P(1+rt) \\ A=7500(1+0.04*1) \\ A=7500(1+0.04) \\ A=7500(1.04) \\ A=7800 \end{gathered}$

therefore, at the end of 1 year he will have $ 7800 in his bank account

I hope this helps you