Question

sonja and jake just got married. they received $4500 in gift money and deposited it into a savings account that pays %2.85 simple interest. how much will they have in savings after 3 years?

Answer 1

9514 1404 393

Answer:

$4884.75

Explanation:

The amount in a simple interest account is given by the formula ...

A = P(1 +rt)

Here, we have principal P=$4500, interest rate r=0.0285, and time t=3. Then the amount in the savings account will be ...

A = $4500(1 +.0285·3) = $4500·1.0855 = $4884.75