226k views
5 votes
Michael goes to the bank and puts $6000 in a savings account. He earns a simple interest of 3.5% If he leaves the money in the account for 2 years, what is the total amount in the account after the two years?

1 Answer

9 votes

9514 1404 393

Answer:

$6420

Explanation:

The account value can be found using the formula ...

A = P(1 +rt)

where P is the initial deposit, r is the annual rate, and t is the number of years.

A = $6000(1 + .035×2) = $6000(1.07) = $6420

The total amount after 2 years is $6420.

User Achyut Pokhrel
by
8.5k points