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Answer the following questions10. How much interest will be earned in 3 years from $730placed in a savings account at 6.5% simple interest?

User Matus Dubrava
by
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1 Answer

18 votes
18 votes

Compound Interest Formula


A=P*(1+rt)

where A is the accrued amount, P is the principal amount, r the rate, and t the time.

From our problem we can get:

• P = $730

,

• r = 6.5% = 0.065

,

• t = 3

Replacing them in the formula:


A=730*(1+(0.065)*(3))

Simplifying:


A=730*(1+0.195)
A=730*(1.195)
A=872.35

Answer: $872.35

User TomSjogren
by
2.5k points
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