Question

A new bank customer with $3,500 wants to open a money market account. The bank is offering a

simple interest rate of 1.1%.
a. How much interest will the customer earn in 10 years?
b. What will the account balance be after 10 years?

Answer 1

A. they will earn 385 dollars in interest in ten years

B. the accounts balance will be $3,885 after 10 years

Explanation:

for part A, there are 2 possible answers, depending on what your looking for, if your looking for the percentage interest, then its 11%, but if your looking for how much they will make off of interest in 10 years, then the answer would be $385.