Multiple choice

A self-employed individual places $ $5,000$ in an account that earns $8$% simple annual interest. How much money will be in this account after $2$ years?

  1. 700

  2. 800

  3. 900

  4. 600
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B Correct answer
AI explanation

Using the simple interest formula, Interest = (Principal * Rate * Time) / 100, we substitute the given values to find the interest earned over two years. The calculation is (5000 * 8 * 2) / 100, which equals 80000 / 100. The total interest accumulated in the account is $800.

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