Question

Dany deposits $4,700 in an account that pays 2.15% simple interest. He keeps the money in the account for three years but doesn't make any deposits or withdrawals. How much interest will he receive after the three years?

Answer 1

Dany will recieve $303.15 in interest and will have a total of $5003.15

General Formulas and Concepts:

Pre-Algebra

Order of Operations: BPEMDAS

1. Brackets
2. Parenthesis
3. Exponents
4. Multiplication
5. Division
6. Addition
7. Subtraction

• Left to Right

Algebra I

Simple Interest Rate Formula: A = P(1 + rt)

• A is final amount
• P is principle amount
• r is rate
• t is time (in years)

Explanation:

Step 1: Define

Principle amount P = 4700

Rate r = 2.15% = 0.0215

Time t = 3 years

Step 2: Solve for A

1. Substitute [SIRF]: A = 4700[1 + 0.0215(3)]
2. [Brackets] Multiply: A = 4700[1 + 0.0645]
3. [Brackets] Add: A = 4700[1.0645]
4. Multiply: A = 5003.15

Step 3: Find Interest Gained

Final - net

1. Substitute: 5003.15 - 4700
2. Subtract: 303.15