Question

You deposit $500 in an

account that earns
simple interest at an
annual rate of 5.6%.
How much money is in
the account after 3
years?

Answer 1

Answer:

I = $ 84.00

Calculation:

First, converting R percent to r a decimal

r = R/100 = 5.6%/100 = 0.056 per year,

then, solving our equation

I = 500 × 0.056 × 3 = 84

I = $ 84.00

The simple interest accumulated

on a principal of $ 500.00

at a rate of 5.6% per year

for 3 years is $ 84.00.

Explanation:

Answer 2

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$500\\ r=rate\to 5.6\%\to (5.6)/(100)\dotfill &0.056\\ t=years\dotfill &3 \end{cases} \\\\\\ A = 500[1+(0.056)(3)] \implies A=500(1.168)\implies A = 584`