sandy wrote:

A deposit at a local bank earns between 2 percent and 5 percent simple interest in a year. If Shirley makes an initial deposit of $800 at the bank, which of the following could be the amount of money in her account at the end of one year?

A. $814

B. $820

C. $842

D. $848

E. $860

1% of $800 = $8

So, 2% of $800 = $16

So, at a 2% rate, Shirley has a TOTAL balance of $816

10% of $800 = $80

So, 5% of $800 = $40

So, at a 5% rate, Shirley has a TOTAL balance of $850

This means Shirley's balance is BETWEEN $816 and $840

Only answer choice B meets this condition.

Cheers,

Brent

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Brent Hanneson – Creator of greenlighttestprep.com

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