Question

You have 550$ in a savings account that earns 3% simple interest each year.How much will be in your account in 10 years?

Answer 1

Hey there! Hope I can help!

P is the principal amount, $550.00.
R is the interest rate, 3% per year, or in decimal form, 3/100 = 0.03.
T is the time involved, 10 year(s) time period.
So, t is the 10 year time period.

To find the simple interest, we multiply 550 × 0.03 × 10 to get $165.00

Then the interest is added onto the principal to figure the new amount after 10 years.
550.00 + 165.00 = 715.00 > $715.00 after 10 years.

Hope this helps!