Question

A new bank customer with ​$3,000 wants to open a money market account. The bank is offering a simple interest rate of ​1.9%. a. How much interest will the customer earn in 30 ​years? b. What will the account balance be after 30 ​years?

pls answer fast due in 10 minutes

Answer 1

a. To calculate the interest earned in 30 years, we can use the simple interest formula:

Simple interest = Principal * Rate * Time

Here, the principal (P) is $3,000, the rate (R) is 1.9%, and the time (T) is 30 years.

Simple interest = $3,000 * 0.019 * 30 = $1,710

Therefore, the customer will earn $1,710 in interest over 30 years.

b. To calculate the account balance after 30 years, we can add the interest earned to the principal:

Account balance = Principal + Interest

Account balance = $3,000 + $1,710 = $4,710

Therefore, the account balance will be $4,710 after 30 years.

Answer 2

a. To calculate the interest earned in 30 years, we can use the simple interest formula:

Simple interest = Principal * Rate * Time

Here, the principal (P) is $3,000, the rate (R) is 1.9%, and the time (T) is 30 years.

Simple interest = $3,000 * 0.019 * 30 = $1,710

Therefore, the customer will earn $1,710 in interest over 30 years.

b. To calculate the account balance after 30 years, we can add the interest earned to the principal:

Account balance = Principal + Interest

Account balance = $3,000 + $1,710 = $4,710

Therefore, the account balance will be $4,710 after 30 years.