Question

Colin deposited $1,230 in an account that pays 3.19% simple interest for three years.a. What will the interest be for the three years?

b. What will be the new balance after three years?

Answer 1

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$1230\\ r=rate\to 3.19\%\to (3.19)/(100)\dotfill &0.0319\\ t=years\dotfill &3 \end{cases} \\\\\\ A = 1230[1+(0.0319)(3)] \implies \stackrel{balance}{\boxed{A \approx 1347.71}}~\hfill \underset{interest}{\stackrel{1347.71~~ - ~~1230}{\boxed{117.71}}}`