Question

A new bank customer with $3,000 wants to open a money market account. The bank is offering a simple interest rate of 1.2%

Answer 1

Alright, so we want to know how much that can be earned in one year. So that's going to be 3000. And this is simple interest. So this is one plus 0.011, which equals $3,033. And that's the solution to this exercise.

Answer 2

$3,036

Explanation:

The new customer can open a money market account. The bank will deposit $3,000 into the account.

The bank will pay 1.2% (0.012) in interest every year. This interest will increase the original amount to $3,036.