Question

An account earn simple interest $200 at 3% for 5 years what is the account balance

Answer 1

$230

Explanation:

We can use the simple interest formula for this:

`A = P (1 + rt)`

P = initial balance

r = annual interest rate

t = time

First, lets change 3% into a decimal:

3% ->
`(3)/(100)` -> 0.03

Now, lets plug the values into the equation:

`A=200(1+(0.03)(5))`

`A=230`

The account balance is $230