Question

You put $200 in a savings account. The account earns 6% simple interest. A) What is the interest earned after 3 years? B) What is the balance after 3 years?

Answer 1

Answer: (a) $ 36 (b) $ 236

Explanation:

Simple interest = Principal x rate x Time

Given: Principal = $200 . rate = 6% = 0.06 ,

(a )Time = 3 years

Simple interest = 200 x 0.06 x 3

= $ 36

So, the interest earned after 3 years = $ 36

(b) Balance in account after 3 years = Principal + Simple interest

= $ (200+36) = $ 236

So, the balance after 3 years = $ 236