Question

A new bank customer with ​$2,500 wants to open a money market account. The bank is offering a simple interest rate of ​1.3%. a. How much interest will the customer earn in 30 ​years? b. What will the account balance be after ​30 years?

Answer 1

A new bank customer with $2,500 will earn $975 in interest and have an account balance of $3,475 after 30 years with a 1.3% simple interest rate.

Step-by-step explanation:

To calculate the interest earned in 30 years, we can use the formula:

I = P * r * t

Where:

• I is the interest earned
• P is the principal amount (initial deposit)
• r is the interest rate (1.3% or 0.013)
• t is the time in years (30)

Plugging in the values, we have:

I = 2500 * 0.013 * 30 = 975

Therefore, the customer will earn $975 in interest over 30 years.

To calculate the account balance after 30 years, we can use the formula:

A = P + I

Where:

• A is the account balance
• P is the principal amount (initial deposit)
• I is the interest earned

Plugging in the values, we have:

A = 2500 + 975 = 3475

Therefore, the account balance after 30 years will be $3,475.

Answer 2

the answer is 975

Step-by-step explanation:

find out what 1.3% of 2500 then multiply it by 30