Question

You deposit $300 in a savings account. The account earns 2% simple interest per year. What is the interest and balance earned after 10 years?

Answer 1

$365.70

Explanation:

The formula to find this is
`y = a(1+r)^t\\`

For this, a is the initial amount, r is the growth rate percentage (but displayed as a decimal), and t is time.

So to solve, you would do

`y = 300(1+0.02)^10\\y = 300(1.02)^10\\y = 365.698325998\\OR\\y = $365.7 in interest`