Final answer:
Ernie Rolph will earn $117 in interest from a $5850 deposit at 2% simple interest for 1 year. At the end of the year, the account balance will be $5967.
Step-by-step explanation:
Ernie Rolph deposits $5850 at a 2% simple interest rate for 1 year. To calculate the interest earned, we use the formula for simple interest which is Interest = Principal × Rate × Time. In this case, the principal is $5850, the rate is 2% (expressed as a decimal, 0.02), and the time is 1 year. Therefore, the amount of interest Ernie earns after one year can be calculated as follows:
- Interest = $5850 × 0.02 × 1
- Interest = $117
The total account balance at the end of the year is the original principal plus the interest earned:
- Account Balance = Principal + Interest
- Account Balance = $5850 + $117
- Account Balance = $5967