Adam has $1250 in his bank account.
The bank pays him an annual interest of 2%.
He does not deposit any more money.
- What is the interest after a year?
- How much will he have in his bank account after a year?
(a)
Interest after a year
= 2% x 1250
=
2100 x 1250
= $25
(b)
Amount that he will have in his bank account after a year
= 1250 + 25
= $1275
Answer(s): (a) $25; (b) $1275