Answered

Amanda has $5200 in a savings account that earns 4% annually. If the interest is not compounded, what is the value of her account in 5 years?

A$208.00
B$1040.00
C$5408.00
D$6240.00

Verified Answer :

maikasuaya

D is the correct answer.

You start of with 5200, if she earns 4% each year for the next 5 years, she would earn a total of 20% more than what she had now.

You would multiply 5,200 by 1.20 Which equals 6,240

The value of her account in 5 years is 1040 dollars. Then the correct option is B.

What is simple interest?

Simple interest is the concept that is used in many companies such as banking, finance, automobile, and so on.

Amanda has $5200 in a savings account that earns 4% annually. If the interest is not compounded.

Then the value of her account in 5 years will be

The formula for the amount is given as

\(\rm Amount = \dfrac{P \times R \times T}{100}\)

We have

P = %5200

R = 4%

T = 5 years

Then the amount will be

\(\rm Amount = \dfrac{ 5200 \times 4 \times 5}{100}\\\\\Amount = \$1040.00\)

More about the simple interest link is given below.

https://brainly.com/question/2793278

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