Question

An account earns simple annual interest.

$925 at 2.3% for 2.4 years

a. Find the interest earned.

$

b. Find the balance of the account.

$

Answer 1

the interest earned is $50.22.

the balance of the account is $975.22.

Explanation:

a. To find the interest earned, we can use the formula:

Interest = Principal x Rate x Time

where the Principal is $925, the Rate is 2.3% expressed as a decimal (0.023), and the Time is 2.4 years.

Interest = $925 x 0.023 x 2.4

Interest = $50.22

Therefore, the interest earned is $50.22.

b. To find the balance of the account, we need to add the interest earned to the initial principal:

Balance = Principal + Interest

Balance = $925 + $50.22

Balance = $975.22

Therefore, the balance of the account is $975.22.