Stella deposits $5000 in a savings account at a bank that offers interest of 5.5% on such accounts.What is the value of the money in her savings account in one year's time?
A)$4739
B)$5135
C)$5275
D)$7750
E)$5000

Question

Quizplus · Accepted Answer

The interest earned on the savings account for one year is:

= $5000 x 5.5%
= $5000 x 0.055
= $275

So, the value of the money in her savings account in one year's time is:

= $5000 + $275
= $5275

Therefore, the best choice is C.

Stella Deposits $5000 in a Savings Account at a Bank