Question

Thomas invested $1498 at 6% simple interest per annum

Calculate:
1
The interest, in dollars, earned after six months
6
yu. au
1498 x
100 x
(11)
The TOTAL amount of money in his account after 3 years​

Answer 1

• $44.94 interest in 6 months
• $1767.64 balance in 3 years

Explanation:

a) The simple interest is given by the formula ...

I = Prt

where P is the principal invested at rate r for t years. Putting the given values in the formula, we find ...

I = $1498·0.06·(6/12) = $44.94 . . . . interest earned in 6 months

__

b) The account balance in 3 years will be the initial principal amount plus earned interest.

A = P(1 +rt) = $1498(1 +0.06·3) = $1767.64 . . . . balance after 3 years