Question

An account earns simple interest. $300 at 4% for 3 years a. Find the interest earned. $ b. Find the balance of the account. $

Answer 1

a. take 300*0.04*3 which is $36

b. add $36 to $300

Answer 2

a. $36

b. $336

Explanation:

The simple interest on a amount is:

A=P(1+rt)

A is the amount after interest, P is the amount before interest, r is the rate of interest and t is the time in years.

a.

We can use the formula:

`=300\cdot{(1+0.04\cdot{3})}=300\cdot{1.12}=336`

The interest earned is the amount after interest minus the original amount before interest:

`=336-300=36`

$36 of interest was earned

b.

The balance of the account is $336 worked out in a