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Simon invested $3200 in an account with 3.5% simple interest. After 3 years, he transferred his balance to an account with 6% simple interest. What is Simon’s final balance after 6 years in the second account?

1 Answer

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Answer:

$4172.48

Explanation:

To calculate Simon's final balance, we can use the following formula:

Final balance = Principal + (Principal × Interest rate × Time)

First, let's calculate the interest earned in the first account:

Interest earned in the first account = Principal × Interest rate × Time

= $3200 × 3.5% × 3 years

= $3200 × 0.035 × 3 years

= $336

Next, let's calculate the final balance in the first account:

Final balance in the first account = Principal + Interest earned in the first account

= 3200 + 336

= $3536

Now, let's calculate the interest earned in the second account:

Interest earned in the second account = Final balance in the first account × Interest rate ×Time

= $3536 × 6% × 3 years

= $3536 × 0.06 × 3 years

= $636.48

Finally, let's calculate Simon's final balance in the second account:

Final balance in the second account = Final balance in the first account + Interest earned in the second account

=3536 + 636.48

= $4172.48

Therefore, Simon's final balance after 6 years in the second account is $4172.48

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