Question

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

Answer 1

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

Answer 2

I think b not really sure