Question

Carla has $1560 in a savings account that pays 2.5% simple interest. How much interest is earned in 3 years? b) How much money is in her savings account at the end of 3 years?

plz show work

Answer 1

a) The interest is earned in 3 years = 112.5

b) The total amount earned at the end of 3 years = 1672.5 rupees

Explanation:

Given Carla has $1560 in a savings account that pays 2.5% simple interest

Interest = 1560 × 2.5 %

= 1560 × 0.025

= 37.5

The interest for one year = 37.5

The interest is earned in 3 years = 112.5

b) The total amount earned at the end of 3 years

= Amount + interest

= 1560 + 112.5

= 1672.5