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Brian deposited $1,075 in an account that pays 2.35% simple interest for 3 ½ years. (9 pts.) How much total interest did the account earn? ______________ What is the ending balance in the account? ______________ How much interest did the account earn in the first year? _______________

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Answer:

The total interest the account earned was $88.41.

The ending balance in the account is $1,163.41.

The account earned $25.26 in interests in the first year.

Explanation:

The simple interest is one that does not accumulate to the initial capital, that is to say that the capital does not accumulate over the years.

Therefore, if Brian deposited $ 1,075 in an account with an interest of 2.35% per year for 3 and a half years, to obtain the total interest generated by the account, the following calculation must be performed:

(1,075 x 2.35 / 100) x 3.5 = X

25.2625 x 3.5 = X

88.41 = X

Thus, the interest generated during the first year was $ 25.26, while the accumulated interest during 3 and a half years was $ 88.41. In turn, since 88.41 + 1,075 equals 1,163.41, that is the resulting amount after the end of the investment.

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