Final answer:
To find the ending balance after depositing $10,000 at 3.85% simple interest for three years, calculate the total interest ($1,155) and add it to the principal to get the final amount of $11,155.
Step-by-step explanation:
If you deposit $10,000 at 3.85% simple interest, the formula to calculate the total interest after three years is:
Interest = Principal × Rate × Time
Where:
- Principal = $10,000
- Rate = 3.85% or 0.0385 (in decimal form)
- Time = 3 years
Let's calculate the interest first:
Interest = $10,000 × 0.0385 × 3 = $1,155
Next, we add the calculated interest to the principal amount to get the ending balance:
Ending Balance = Principal + Interest
Ending Balance = $10,000 + $1,155 = $11,155