Question

A new bank customer with $4,500 wants to open a money market account. The bank is offering a

simple interest rate of 1.9%.
a. How much interest will the customer earn in 30 years?
b. What will the account balance be after 30 years?

Answer 1

The customer will earn $2565 in interest and the account balance after 30 years will be $7065.

Step-by-step explanation:

To calculate the interest earned in 30 years, we can use the simple interest formula: I = P * r * t, where I is the interest, P is the principal amount, r is the interest rate, and t is the time in years.

To find the interest earned, we substitute the given values into the formula: I = 4500 * 0.019 * 30 = $2565.

To find the account balance after 30 years, we add the interest earned to the principal amount: Account Balance = P + I = 4500 + 2565 = $7065.

Answer 2

Ans

Step-by-step explanation:]\

To use the simple interest formula, I = Prt, we substitute in the values for ... The money you put in the bank is called the principal, P, and the bank pays ... of t years at an annual interest rate r, the amount of interest, I, earned is ... Nathaly deposited $12,500 in her bank account where it will earn 4% interes