Question

You invest 1000 in an account at 2.5% per year simple interest how much will you hav in your account at the beginning of the 4th year round your answer to the nearest whole dollar

Answer 1

notice, that, at the beginning of the 4th year, you're only getting interest for the previous 3 years, since the fourth year is just starting and hasn't accumulated any interest yet,


`\bf ~~~~~~ \textit{Simple Interest Earned Amount}\\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to& \$1000\\ r=rate\to 2.5\%\to (2.5)/(100)\to &0.025\\ t=years\to &3 \end{cases} \\\\\\ A=1000(1+0.025\cdot 3)\implies A=1000(1.075)`