Question

Brian deposits $7000 into an account that pays simple interest at an annual rate of 3%. He does not make any more deposits. He makes no withdrawals until the end of 5 years when he withdraws all the money. Answer the following questions. If necessary, refer to the list of financial formulas. (a) How much total interest will Brian earn? $ (b) What will the total amount in the account be (including interest)?

Answer 1

A)1050

B)8050

Explanation:

to find interest we use the formula A= P(1+rt) where P is the initial investment, r is the rate percent, and t is the time interval

for this question we have A=7000(1+3(5)) which gives 8,050 dollars which is the answer to part B

for part A we simply subtract the answer from B from the initial investment so 8050 - 7000 = 1050 made from interest