Question

Nine years ago, Tarah opened a savings account with her bank. She started with a balance of $359 and has not made any withdrawals or deposits since then. If her interest rate is 8% each year, how much interest has accrued using simple interest?

Answer 1

The interest accrued is $258.48.

Explanation:

Given that:

Initial balance in the savings account = $359

Interest rate = 8%

Time for which no withdrawals or deposits were done = 9 years

To find:

Simple Interest accrued = ?

Solution:

First of all, let us have a look at the formula for simple interest.

`SI = (PRT)/(100)`

Where P is the Principal Amount.

R is the annual rate of interest

T is the time in years.

Here, we are given:

P = $359

R = 8%

T = 9 years

Let us put all the values in the formula:

`SI = (359 * 8 * 9)/(100)\\\Rightarrow SI = (359 * 72)/(100)\\\Rightarrow SI = (25848)/(100)\\\Rightarrow \bold{SI = \$258.48}`

So, the interest accrued is $258.48.