Question

Ms. Anderson deposits $7,000 into a savings account that pays a simple interest of 2% per year. What is the total amount of money that will be in her account at the end of 3 years?

Answer 1

$7420

Explanation:

First, converting R percent to r a decimal

r = R/100 = 2%/100 = 0.02 per year,

then, solving our equation

I = 7000 × 0.02 × 3 = 420

I = $ 420.00

The simple interest accumulated

on a principal of $ 7,000.00

at a rate of 2% per year

for 3 years is $ 420.00.