Question

Josh has $500 in savings account that earns 10% annually in simple interest. How much will he have in total in 3 years

Answer 1

$650
If he earns 10% annually in interest, that means each year, the amount of money in his savings account will increase by $50. In 3 years, his account savings would increase by $150. In 3 years, his savings account would have $650.

Answer 2

$650

Explanation:

John starts with $500 at the start of the first year, and by the end of it he has gained 10% of that, which is +$50 meaning his total is $550. At the end of year 2 he gets another $50, meaning his total is $600. The end of the third year he gets another $50 and his final total is $650.