Question

1. Julia deposited $250 in a savings account that earns 2.7% simple interest. How much interest has Julia earned by the end of the first year?

$6.75
$92.59
$256.75
$675.00
2. Armand deposited $389.42 in a savings account that earns 3.2% simple interest. What is Armand’s account balance after seven years?
$87.23
$401.88
$476.65
$872.30

3. Andy deposited $1,567.12 in a savings account that earns 1.9% simple interest. What will Andy’s account balance be in nine months?
$1,567.12
$1,589.45
$1,596.90
$1,835.10

Answer 1

1. $675
2. $389.42 (3.2)^7
3. 1567.12(1.9)^9/12

Answer 2

Explanation:

Simple interest formula is :
`p* r* t`

t is always in years here.

1.

p = 250

r = 2.7% or 0.027

t = 1

Simple interest earned =
`250*0.027*1` = $6.75

2.

p = 389.42

r = 3.2% or 0.032

t = 7

Simple interest earned =
`389.42*0.032*7` = $87.23

Amount after 7 years will be =
`389.42+87.23` = $476.65

3.

p = 1567.12

r = 1.9% or 0.019

t =
`9/12=0.75`

Simple interest earned =
`1567.12*0.019*0.75` = $22.33

Account balance after 9 months =
`1567.12+22.33` = $1589.45