Question

Find the interest and the balance of the account. Round your answer to the nearest cent, if necessary. 1. P=$100, r=3.5%, t=5 years​

Answer 1

The interest earned on a $100 deposit at a 3.5% simple interest rate over 5 years is $17.50. The account balance after 5 years would be $117.50.

Step-by-step explanation:

Calculating Simple Interest and Balance

To find the interest and balance of an account, we can use the simple interest formula:

Interest (I) = Principal (P) × Rate (r) × Time (t)

For the provided example with a principal (P) of $100, an annual interest rate (r) of 3.5%, and a time period (t) of 5 years, the calculation would be:

I = $100 × 0.035 × 5

The interest accrued over 5 years is calculated as follows:

I = $100 × 0.035 × 5 = $17.50

The total balance of the account after 5 years is the sum of the original principal plus the interest earned. Therefore:

Balance = Principal + Interest

Balance = $100 + $17.50 = $117.50

Thus, the interest earned is $17.50 and the account balance after 5 years is $117.50.