Question

Find the interest earned and the balance

of the account:
logioning
P = $900
r= 6%
t = 7 years
I need help

Answer 1

Account balance=$1,278

Interest amount=$378

Explanation:

First we calculate the total interest accrued after a given amount of time;

I=P×r×t

where;

I=interest amount after time (t)

P=principal amount

r=annual interest rate

t=number of years

In our case;

P=$900

r=6%=6/100=0.06

t=7 years

replacing;

Simple interest (I)=900×0.06×7=$378

Interest earned=$378

Account balance=Principal amount+Interest earned

where;

Principal amount=$900

Interest earned=$378

Replacing;

Account balance=(900+378)=$1,278

Account balance=$1,278