Question
Alicia deposits $900 in the bank and earns 6% interest each year. How much interest will she have earned in 5 years?
$54
$270
$108
$45
$54
$270
$108
$45
Answers
Damon
If simple interest (not compounded)
0.06 * 900 = 54
54 * 5 = 270
It is not compounded because that would yield more, which is not one of your choices.
0.06 * 900 = 54
54 * 5 = 270
It is not compounded because that would yield more, which is not one of your choices.