Question

Michael deposits $2650 into an account. The interest rate on the account is 6% compounded annually. What is the balance in Michael's account after 2 years? After 3 years?

Answer 1

$318 after 2 years

$477 after 3 years

Explanation:

The formula for simple interest is i=p*r*t.

p=$2650

r=6% or .06

t=2 and 3

You have to multiply everything together to get the intrest so the balance after 2 years is $318 and the balance after 3 years is $477.