Question

If you invest 3,500 in a savings account that pays 4% simple interest how much will the new balance be after including interest?

Answer 1

New balance = 3640

Explanation:

Given the following data;

Interest rate = 4% = 4/100 = 0.04

Principal = 3500

To find the new balance;

First of all, we would find the amount at the interest rate;

New amount = interest rate * principal

New amount = 0.04 * 3500

New amount = 140

Now, to find the new balance;

New balance = principal + new amount

New balance = 3500 + 140

New balance = 3640