Question

You have $550 in a savings account that earns 3% simple interest each year. How much will be in your account in 10 years?

Answer 1

Answer: $715

Explanation:

Given : Principal amount (P)= $550

Interest rate (r)= 3% = 3/100 = 0.03

Time period (t) =10 years

WE know that the formula of simple interest is

S.I. = (P) (r) (t)

S.I. = 550 x 0.03 x 10

S.I. = $165

Now, the total amount in account after 10 years = Principal+ S.I.

Therefore, the total amount in account after 10 years = $550+$165 = $715