Question

aaliyah placed $50 in a savings account with an annual simple interest rate of 3.5%. If there were no other deposits or withdrawals, what would the total balance be after 20 years?

Answer 1

The total balance is $85.

Explanation:

Given that the formula of Simple Interest is I = (prt)/100 where I represents interest amount, p is principle, r is rate interest and t is number of years :

`I = (p * r * t)/(100)`

Let p = $50,

Let r = 3.5%,

Let t = 20 years,

`I = (50 * 3.5 * 20)/(100)`

`I = (3500)/(100)`

`I = 35`

We have found out that the interest amount is $35. So the total amount in the saving account after 20 years is :

$50 + $35 = $85

Answer 2

Explanation:

P =$ 50

t = 20 years

r = 3.5%

I = Prt

`=50*(3.5)/(100)*20`

=5 * 3.5 * 2

= $ 35

Total balance = P + I = 50 + 35 = $ 85