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What is the final balance of a bank account after two years if the sta

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New post 29 Oct 2018, 04:33
00:00
A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

86% (00:46) correct 14% (01:06) wrong based on 37 sessions

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Re: What is the final balance of a bank account after two years if the sta  [#permalink]

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New post 29 Oct 2018, 04:39
What is the final balance of a bank account after two years if the starting balance is $1,000 at an annual rate of 5%, using simple interest? Assume no other money was withdrawn or deposited.


A. $50
B. $100
C. $1,050
D. $1,100
E. $1,150


Amount = P + (P *n * r)/100
= 1000 + ( 1000*5*2)/100
= 1100$

Choice D

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Re: What is the final balance of a bank account after two years if the sta  [#permalink]

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New post 29 Oct 2018, 04:44
What is the final balance of a bank account after two years if the starting balance is $1,000 at an annual rate of 5%, using simple interest? Assume no other money was withdrawn or deposited.


A. $50
B. $100
C. $1,050
D. $1,100
E. $1,150

A = P(1 + rt)
=1000(1+.05*2)
=1100

IMO D
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Re: What is the final balance of a bank account after two years if the sta  [#permalink]

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New post 29 Oct 2018, 09:03
Bunuel wrote:
What is the final balance of a bank account after two years if the starting balance is $1,000 at an annual rate of 5%, using simple interest? Assume no other money was withdrawn or deposited.


A. $50
B. $100
C. $1,050
D. $1,100
E. $1,150


\(SI = \frac{1000*2*5}{100}\)

So, \(SI = 100\)

Thus, Amount available at the end of 2 years is $1,100 , Answer must be (D)
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Re: What is the final balance of a bank account after two years if the sta  [#permalink]

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New post 30 Oct 2018, 03:35

Solution


Given:
    • Starting balance = $1,000
    • Annual rate of simple interest = 5%
    • No other money was withdrawn or deposited

To find:
    • The final balance after two years

Approach and Working:
    • Balance at the end of 1 year = $1,000 + 5% of $1,000 = $1,000 + $50 = $1,050
    • Balance at the end of two years = $1,050 + 5% of 1,000 = $1,100

Hence, the correct answer is Option D

Answer: D

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Re: What is the final balance of a bank account after two years if the sta   [#permalink] 30 Oct 2018, 03:35
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