Question

Armand deposited $\$389.42$ in a savings account that earns $3.2\%$ simple interest.

What is Armand’s account balance after seven years?

• A. $\$87.23$
• B. $\$401.88$
• C. $\$476.65$
• D. $\$872.30$

Answer 1

The correct option is C

$\$476.65$

Explanation for correct option:

Finding Armand's account balance after seven years:

Given, Principal $=\$389.42$

rate of interest $=3.2\%$

Time $=7years$

As given interest is simple interest,

We know,

$\text{Simple Interest}=\frac{\text{Principal × Rate of interest × Time}}{100}$

$=\frac{389.42\times 3.2\times 7}{100}$

$=\$87.23$

As we know, $\text{Total Amount = Principle + S.I}$

Hence, Amount $=\$389.42+\$87.23$

$=\$476.65$

Hence, the correct answer is option $\left(C\right)$.