Question

If $475 is put in the bank and each year the account earns 6% simple interest, then how much interest

will be earned in three years? Round your answer to the nearest cent if necessary.

Answer 1

First year: 475 + (6% x 475)= 503.5

Second year: 503.5 + (6% x 503.5)= 533.71

Third year: 533.71 + (6%x 533.71)= 565. 73 (to the nearest cent)