Question

$1,340 is deposited into a savings account that earns 6% simple interest for three years. What is the balance in the account after 3 years?

Answer 1

Given:

Pricipal P = %1340.

The rate of interest r = 6% = 0.06.

The numver of years t =3.

The formula to find the amount by simple interest is

`A=P(1+_{}\text{rt)}`

Substitute P=1340, r=0.06, and t=3 in the formula, we get

`A=1340(1+0.06*3)`

`A=1581.2`

The balance in the account after 3 years is $ 1581.20.