Question

Randy puts $3000 into a savings account that earns 6% simple interest annually. After six years, how much money will Randy have total in his account?

Answer 1

$4080

Explanation:

Step one:

given data

principal= $3000

rate = 6%= 0.06

time = 6 years

Required

The total amount in the account after 6 years

Step two:

We know that the final amount on a simple interest investment is computed using

`A=P(1+rt)\\\\A=3000(1+0.06*6)\\\\A=3000(1+0.36)\\\\A=3000(1.36)\\\\A=4080`