Question

A new bank customer with ​$2,000 wants to open a money market account. The bank is offering a simple interest rate of ​%1.1a. How much interest will the customer earn in 10 ​years? b. What will the account balance be after 10 ​years?

Answer 1

$2220

Explanation:

Step one

Given data

Principal= $2000

rate= 1.1%= 0.011

time= 10 years

Required

The final amount A

Step two;

For simple interest, the final amount is given as

A=P(1+rt)

substitute

A=2000(1+0.011*10)

A=2000(1+0.11)

A=2000(1.11)

A=2220

$2220