Question

Sylvia deposits $50 into a savings account with a 2% interest rate. Using the formula for simple interest, how much will she have in the account in 5 years?
A
$55.00

B
$45.00

C
$60.00

D
$550.00

Answer 1

To calculate the amount Sylvia will have in her savings account after 5 years with a simple interest formula, we can use the formula:

\[
A = P + I
\]

where:
- \( A \) is the total amount in the account after time \( t \)
- \( P \) is the principal amount (initial deposit)
- \( I \) is the interest earned

The interest \( I \) can be calculated using the formula:

\[
I = P \times r \times t
\]

where:
- \( r \) is the interest rate (as a decimal)
- \( t \) is the time in years

Given:
- \( P = 50 \)
- \( r = 0.02 \)
- \( t = 5 \)

Now, we can calculate the interest:

\[
I = 50 \times 0.02 \times 5 = 50 \times 0.1 = 5
\]

Now, we can calculate the total amount in the account:

\[
A = P + I = 50 + 5 = 55
\]

Thus, after 5 years, Sylvia will have **$55.00** in her account.

The correct answer is **A) $55.00**.