Question

You put $500 in a savings account. The account earns 3% simple interest per year. What is the Interest earned after 3 years?

What is the Balance after 3 years?

Answer 1

balance after 3 years is $545.

Explanation:

we can use the formula for simple interest:

Interest = Principal × Interest Rate × Time

Given:

Principal (P) = $500

Interest Rate (R) = 3% = 0.03 (expressed as a decimal)

Time (T) = 3 years

Let's calculate the interest earned first:

Interest = $500 × 0.03 × 3

= $45

Therefore, the interest earned after 3 years is $45.

To calculate the balance after 3 years, we add the interest earned to the principal:

Balance = Principal + Interest

= $500 + $45

= $545

Therefore, the balance after 3 years is $545.