Question

You have $475 in your savings account that cars 3.25% simple interest each year.

How much interest will you accumulate after 7 years?

Answer 1

Answer: To calculate the interest accumulated after 7 years with a simple interest rate of 3.25%, we can use the formula:

Interest = Principal * Rate * Time

where:

Principal = $475 (initial amount in the savings account)

Rate = 3.25% (expressed as a decimal, 3.25% = 0.0325)

Time = 7 years

Now, let's calculate the interest:

Interest = $475 * 0.0325 * 7

Interest = $475 * 0.2275

Interest ≈ $108.4375

Rounded to two decimal places, you will accumulate approximately $108.44 in interest after 7 years with a simple interest rate of 3.25%.