Question

A new bank customer with ​$3,000 wants to open a money market account. The bank is offering a simple interest rate of 1.8​%. How much interest will the customer earn in 10 years? b. What will the account balance be after 10 years?

Answer 1

Answer: See explanation

Explanation:

The Simple Interest will be calculated as:

= P × R × T

= $3000 × 1.8% × 10.

= $3000 × 0.018 × 10

= $540

The interest that the customer earn in 10 years is $540.

Then, the account balance after 10 years will be:

= Principal + Interest

= $3000 + $540

= $3540

Therefore, the account balance will be $3540