Final answer:
Brayden deposited $2700 into a savings account with a simple interest rate of 0.03%. The interest earned per year is $0.81, and so after the first year, there will be $2700.81 in the account. This amount will increase by $0.81 every subsequent year.
Step-by-step explanation:
The question involves calculating the future value of an investment with a simple interest rate. Simple interest is calculated by multiplying the principal amount, the interest rate, and the time period concerned. In this case, Brayden deposited $2700 into a savings account with an annual simple interest rate of 0.03%. To calculate the interest earned each year:
Simple Interest = Principal × Rate × Time
Interest earned per year = $2700 × 0.0003 × 1
The calculation will give us the interest earned in one year which, in this case, equals $0.81. Subsequently to find the total amount in the account after each year we add the annual interest to the principal amount:
Total amount after 1 year = $2700 + $0.81 = $2700.81
Since it is a simple interest, the calculation for the following years remains the same. Therefore:
- Total amount after 2 years = $2700.81 + $0.81
- Total amount after 3 years = $2701.62 + $0.81
- And so on for each year after.