Question

Aaron deposited $591.07 in a savings account that earns 3.7% simple interest. What is Aaron's account balance after seven years?

Answer 1

A = 591.07(1+{.037}{7}) and A = 591.07(1.259) and A = $744.16

Answer 2

Answer: $744.16

Explanation:

The formula to find the simple interest is given by :-

`I=Prt`, where P is the principal amount, r is rate of interest ( in decimal) and t is time ( in years).

Given : Aaron deposited $591.07 in a savings account that earns 3.7% simple interest.

i.e. P= $591.07 and r= 3.7%=0.037

Then, the simple interest earned in 7 years:-

`I=591.07*0.037*7=\$153.08713\approx153.09`

Then, the Aaron's account balance after seven years = P+I

=$591.07 +$153.09= $744.16

Hence, Aaron's account balance after seven years = $744.16