Question

If $3000 is invested for 5 years with an interest rate of 10%

per annum, calculate the final balance, rounded to the
nearest cent, if:

Simple interest was used.

Answer 1

Explanation:

The simple interest can be calculated as follows:

I = P * r * t

Where:

I = interest

P = principal amount (3000)

r = interest rate (0.10)

t = time in years (5)

So,

I = 3000 * 0.10 * 5

I = 1500

The final balance would be:

P + I = 3000 + 1500

P + I = 4500

The final balance, rounded to the nearest cent, is $4500.