Answer: $535
Step-by-step explanation
He will be able to buy the refrigerator with the amount he deposited ($500) plus the interest generated from it ($35)(which we get by doing the following):
So the formula for interest is
Interest = (principal ×interest rate × time for which the money was deposited) / 100
Interest = ?
Principal = $500
Interest rate = 7%
Time = 1 year
Now
Interest = (500 × 7 × 1) / 100
Interest = 3500/ 100
Interest = $35
So the refrigerater's cost = 500 + 35
Cost = $ 535
