AIR MATH

Math Question

A teacher opened an investment account at a bank. At the end of each year, the bank paid \( 6.4 \% \) annual simple interest on the money in the account. The table shows the activity in the account for three years. Investment Account Activity \begin{tabular}{|c|c|c|c|c|c|c|} \hline & Amount Year Balance for Year Deposited at Beginning of Year & New Balance & Interest Rate & Interest Earned & Balance for Year \\ \hline 1 & \( \$ 0.00 \) & \( \$ 500.00 \) & \( \$ 500.00 \) & \( 6.4 \% \) & \( \$ 32.00 \) & \( \$ 532.00 \) \\ \hline 2 & \( \$ 532.00 \) & \( \$ 500.00 \) & \( \$ 1,032.00 \) & \( 6.4 \% \) & \( \$ 66.05 \) & \( \$ 1,098.05 \) \\ \hline 3 & \( \$ 1,098.05 \) & \( \$ 500.00 \) & \( \$ 1,598.05 \) & \( 6.4 \% \) & \( \$ 102.28 \) & \( \$ 1,700.33 \) \\ \hline \end{tabular} Which statement explains why the balance in this account has grown? Answer (F) The balance in the account has grown only because regular deposits were made to the account. (G) The balance in the account has grown because regular deposits were made to the account and interest was earned on the previous year's balance. (H) The balance in the account has grown only because interest was earned on the account. (J) There is not enough information to determine why the balance in the account has grown.

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