Question

Michael goes to the bank and puts $6000 in a savings account. He earns a simple interest of 3.5% If he leaves the money in the account for 2 years, what is the total amount in the account after the two years?

Answer 1

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Answer:

$6420

Explanation:

The account value can be found using the formula ...

A = P(1 +rt)

where P is the initial deposit, r is the annual rate, and t is the number of years.

A = $6000(1 + .035×2) = $6000(1.07) = $6420

The total amount after 2 years is $6420.