Question

1. An account is opened with a balance of $2800

earning 4.25% simple interest. What will be the
balance in the account in 30 years?

Answer 1

• The simple interest in the account will be $3570 and the total amount including principle and simple Interest will be $6370

Explanation:

firstly ,

Given That

principal(p)=$2800

Rate(R)=4.25%

Time(T)=30 years

now , we have from formula

simple interest (S.I)= P × T ×R / 100

= (2800×30×4.25) / 100

= $3570

Therefore , Simple Interest in 30 years will be $3570

now , we know

Amount(A) = Principal (P) + Interest (I)

= $2800 + $3570

= $ 6370

Therefore the simple interest in 30 years will be $3570 and the total amount in the bank will be $6370 .