Question

Eric has $100,000 in savings account.The interest rate is 8 % per year and is not compounded.To the nearest Dollar,how much will he have in 3 years?

Answer 1

To calculate the simple interest, we say

S.I = (PxRxT)/100

Where P = the principal amount

R= rate in terms of %

And T= time.

Now P= $100 000

R= 8%

T= 3 years

S.I= (100,000 x8 x3)/100

=$2 400 000/100

= $24, 000

So the interest is 24000

Total amount he will be having = 100000 + 24 000

The total money he will be having in 3 years time = $124 000

Explanation: