Question

Kunio puts $3,300.00 into savings bonds that pay a simple interest rate of 2.5%. How much money will the bonds be worth at the end of 5 years?

Answer 1

Explanation:

Alright, lets get started.

Kunio puts $3,300.00 into savings bonds means

`P=3300`

pay a simple interest rate of 2.5% means

`r=2.5`

`t=5`

Formula for Simple interest =
`(P*t*r)/(100)`

Simple interest =
`(3300*5*2.5)/(100)`

Simple interest = $ 412.5

So, A =
`P + simple interest`

A =
`3300+412.5=3712.5`

Hence bond will be worth $ 3712.5 : Answer

Hope it will help :)