Question

Tessa has $13,710 in a savings account that earns 3% interest per year. The interest is not compounded. To the nearest Dollar, how much will she have in 3 years?

Answer 1

The simple interest formula is

`I=\text{Prt}`

where I is the interest, P the principal, r the interest rate and t the time.

In this case, we have P=13710, r=0.03 and t=3 years.

By substituying these values into the above formula, we have

`I=(13710)(0.03)(3)`

hence,

`I=1233.9`

Therefore, Tessa will save 1233.9 dollars in 3 years.