SOLUTION: suppose you deposit $640 into an account which earns 2.5% annual interest.Explain how you find the balance after one year.

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: suppose you deposit $640 into an account which earns 2.5% annual interest.Explain how you find the balance after one year.      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 581688: suppose you deposit $640 into an account which earns 2.5% annual interest.Explain how you find the balance after one year.
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
2.5% of $640 is 0.025*640 = 16 dollars


So in the first year, you've earned $16 in interest.


Add this to the current balance of $640 to get 640 + 16 = 656


So the balance after one year is $656