Question

Monica has $600 in her savings account. She earns 3% simple interest. She keeps her money in the account for 2 years. At the end of the 2 years, how much money will she have in the account

Answer 1

Monica will have $636 in her savings account at the end of 2 years.

Step-by-step explanation:

To calculate the amount of money Monica will have in her savings account after 2 years, we can use the simple interest formula: Interest = Principal x Rate x Time. In this case, the principal is $600, the rate is 3%, and the time is 2 years.

So, the interest earned after 2 years is: $600 x 0.03 x 2 = $36.

To find the total amount of money, we add the interest to the principal: $600 + $36 = $636.

Therefore, Monica will have $636 in her savings account at the end of 2 years.

Answer 2

Step-by-step explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

P represents the principal

R represents interest rate

T represents time in years

I = interest after t years

From the information given

T = 2 years

P = $600

R = 3%

Therefore

I = (600 × 3 × 2)/100

I = 3600/100

I = $36

She keeps her money in the account for 2 years. It means that at the end if 2 years, the money in her account would be

600 + 36 = $636