Question

Bonnie deposits $70.00 into a new savings account. *The account earns 4.5% simple interest per year. * No money is added or removed from the savings account for 3 years. What is the total amount of money in her savings account at the end of the 3 years?

A. $9.45
B. $79.45
C. $94.50
D. $164.50

Answer 1

The answer is C. $94.50

Explanation:

Formula:I=PRT

I=PRT

I=4.5*70.00*3

I=0.45*70.00*3

I=31.5*3

I=94.50

Answer 2

Answer with Step-by-step explanation:

Amount in Bonnie's account initially=$ 70

The formula for simple interest=
`(P* R* T)/(100)`

Where P is the principal amount

R is rate of interest

and T is the time

Here, P=70,R=4.5,T=3

Interest=
`(70* 4.5* 3)/(100)`

= $ 9.45

Hence, Total amount in his savings account after 3 years= $(70+9.45)

= $ 79.45

Hence, correct option is:

B. $ 79.45