Question

1b. A new bank customer with $3,000 wants to open a money market account. The bank is offering a simple interest rate of 4.5%. What will be the account balance after 20 years? *

Answer 1

$660

Explanation:

Given:

Principle = $3000

Interest rate = 1.1 %

Time = 20 years

Now we have to determine the simple interest.

Formula used :
`S.I = (PRT)/(100)`

where,

P = principle

R = interest rate

T = time S.I = simple interest

Thus, the interest customer earn in 20 years will be, $ 660