Question

10. A new bank customer with $3,000

a money market account. The
wants to open
simple interest rate of 1.1%.
bank is offering a
a. How much interest will the customer earn in
20 years?
b. What will be the account balance after
20 years?

Answer 1

a. $660

b. $3660

Explanation:

a. 1.1% = 1 years

22% = 20 years

22% = 0.22

Take 3000 times 0.22 = $660

So, they will earn $660 interest in 20 years

b. $3000 + $660 = $3660

$3660 is their account balance after 20 years