Question

you invest $1000 in the account at 2.5% simple interest. How much will you have in an account at the begining of the 4th year. Round your answer to the nearest whole dollar

Answer 1

Simple interest formulaInterest = PitwhereP=principal = $1000i=annual interest = 0.025t=time in years = 3

At the beginning of fourth year = at the end of 3 years

Interest = Pit = $1000*0.025*3 = 75
Balance in account after three years= $1000+75 = $1075