Question

Simon has 3,625 currently saved. He leaves it in his savings account for 7 years and is earning 2.3% simple interest. The total amount of interest he will have earned after 7 years is $_______.In total, he will have $______ in his savings account after 7 years. Round to the nearest hundredth, if necessary.

Answer 1

Simon will have $4,191.68 in his savings account after 7 years.

Explanation:

To calculate the total amount of interest Simon will earn after 7 years, we can use the formula for simple interest:

Interest = Principal x Rate x Time

In this case, Simon's principal (initial amount) is $3,625 and the rate is 2.3% (or 0.023 as a decimal). The time is 7 years.

So, the interest earned can be calculated as:

Interest = 3,625 x 0.023 x 7

Simplifying this equation, we get:

Interest = $566.68

Therefore, Simon will have earned $566.68 in interest after 7 years.

To calculate the total amount in Simon's savings account after 7 years, we need to add the interest earned to the initial amount:

Total = Principal + Interest

Total = $3,625 + $566.68

Simplifying this equation, we get:

Total = $4,191.68

Therefore, Simon will have $4,191.68 in his savings account after 7 years.