Question

Help Please

Freddy has saved some money that he would like to use to open a savings account. Savings National Bank has a savings account that earns 2% interest. He is going to deposit $850. If he leaves the money in his account for two and a half years, how much money will he have in the savings account, including the interest that he earned? Show work

Answer 1

if we change 2½ years to an improper fraction, that'd be 5/2 years.

`\bf ~~~~~~ \textit{Simple Interest Earned Amount}\\\\A=P(1+rt)\qquad \begin{cases}A=\textit{accumulated amount}\\P=\textit{original amount deposited}\to& \$850\\r=rate\to 2\%\to (2)/(100)\to &0.02\\t=years\to &(5)/(2)\end{cases}\\\\\\A=850\left( 1+0.02\cdot \cfrac{5}{2} \right)\implies A=850(1.05)\implies A=892.5`