Question

Mr. Juarez opened a savings account with an initial deposit of $560 and will not make any additional deposits or withdrawals. The account earns 1% simple interest. What is the total amount that Mr. Juarez will have in his account at the end of 3 years?

Answer 1

$576.80

Explanation:

We have been given that Mr. Juárez opened a savings account with an initial deposit of $560 and will not make any additional deposits or withdrawals. The account earns 1% simple interest.

We are asked to find the total amount that Mr. Juárez will have in his account at the end of 3 years.

We will use simple interest formula to solve our given problem.

`A=P (1+rt)`

A = Final amount after t years,

P = Principal amount,

r = Annual interest rate in decimal form,

t = Time in years.

Let us convert 1% into decimal form,

1%=1/100=0.01

P=$560 and t=3

A=$560 (1+0.01(3))

A=$560 (1+0.03)

A= $560 (1.03)

A= $576.80

Therefore, Mr. Juárez will have $576. 80 in his account at the end of 3 years. Hope this helps!