Question

Bonnie deposits 70.00 into her savings. There is 4.5 simple interest. She didn't change the amount for her three years. What is the amount of money after?

Answer 1

Answer: She would have $79.45

Step-by-step explanation: Since the question states that the amount gained is a simple interest, we shall apply e formula for simple interest which is;

Interest = PRT/100

Where P is Principal amount initially invested (70), R is the rate of interest earned (4.5%) and T is the time the money was left to yield interest (3).

Substituting for known values we now have,

Interest = (70 x 4.5 x 3)/100

Interest = 210 x 0.045

Interest = 9.45

Her account has earned a total interest of $9.45, therefore the amount of money after 3 years would be,

Total amount = Principal + Interest

Total amount = 70 + 9.45

Total amount = 79.45

Answer 2

The answer is $79.45

Explanation:

If the given 4.5 percent interest rate is a yearly rate then according to the information in the question, we can calculate Bonnie's money at the end of the three year period as:

The initial amount x interest rate x time = 70 x 0.045 x 3 = $9.45

So the amount of money after the three year period comes up to $79.45 for Bonnie.

I hope this answer helps.