Question

Edward deposited $2250 into a savings account 3 years ago. The simple interest rate is 4%.

Edward earned $ __ in interest.


His new account balance is ___$ . (pls step by step explanation)

Answer 1

Edward earned $ 270 in interest

How/Solution:

Multiply $2,250 by 4% (0.04)
[ $2,250 x 0.04 = 90]
and it equal to 90, then multiply it again by 3 [ 90 x 3 = 270 ]

His new account balance is $ 2,520

Solution:

Add $2250 by $270
[ $2,250 + $270 = $ 2,520 ]

Answer 2

He earned $270 and has $2520 because 2250(0.04)(3)= 270
2250+270= $2520