Question

Melanie invests $3,000 at 12% simple interest for 1 year. How much is in the account at the end of the 1 year period?

Answer 1

We have the following:

We must apply the simple interest formula which is the following:

`A=P\cdot(1+rt)`

Where, P is the principal 3000

r is the interest rate 0.12

t is time in years

A is the total value

replacing:

`\begin{gathered} A=3000\cdot(1+0.12\cdot1) \\ A=3000\cdot1.12 \\ A=3360 \end{gathered}`

The answer is $3360 at the end of the 1 year period