Question

A savings account pays 4 1/2% interest. How much interest

will be earned on $450 in 3 years? How much money will
be in the account in 3 years?


i already know the answer but don’t know how to solve it help please!!!

Answer 1

Interest = $60.75

Amount = $510.75

Explanation:

The formula for finding interest is;

Interest = Principal * Rate * Time

And here;

Principal = $450

Rate = 41/2% or 4.5%

Time = 3 years

Interest =
`(450 * 45 * 3)/(1000)`

Divided by 100 because of the percentage of the rate but here I made it 1000 because I moved the decimal point in the 4.5 forward once which means I have to add 0 to the denominator.

=
`(45*45*3)/(100)`

=
`(6075)/(100)`

= $60.75

Now the amount is simply the Principal + Interest which will be;

= $450 + $60.75

= $510.75