Question

Alice deposited $3,100.00 in a new savings account the earned 3.5 percent simple interest. 3 months later she deposited $1,150.00. 3 months after that she withdrew $2,000.00. 3 months after that the bank calculated the simple interest. What is the balance in her account?​

Answer 1

The balance in Alice's account is $6,647.30.

Step-by-step explanation:

To calculate the balance in Alice's account, we'll start with her initial deposit of $3,100.00 and find the simple interest earned after each deposit and withdrawal. The interest earned in the first 3 months is $3,100.00 * 0.035 * (3/12) = $27.31. After Alice's second deposit of $1,150.00, the interest earned in the next 3 months is $4,250.00 * 0.035 * (3/12) = $37.19. Subtracting Alice's withdrawal of $2,000.00, the balance in her account before the bank calculated the interest is $6,525.50. Adding the interest earned in the final 3 months, $6,525.50 + $6,525.50 * 0.035 * (3/12) = $6,647.30. Therefore, the balance in Alice's account is $6,647.30.