Question

Erin opened a savings account that earns 3% simple interest. If she deposits $2,750 and doesn't make any additional deposits or withdrawals how much money will be in her account at the end of 6 years?

Answer 1

$3,245

Explanation:

For a money saved at Simple Interest,

Amount =Simple Interest+Principal

Principal, P=$2750

Rate, r=3%

Time, T=6 Years

[TeX] Simple \: Interest= \frac{Principal X Rate X Time}{100}[/TeX]

[TeX] = \frac{2750X 3 X 6}{100}[/TeX]=$495

Therefore, Amount in Erin's Account after 6 years =2750+495

=$3,245