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? Total Interest = $ What is Tarah's new total balance? New Balance Total = $

Answer 1

617.48

Explanation:

SI = P x R x T / 100

SI = Simple Interest

P = Principal

R = Rate

T = Time

SI = 359 x 9 x 8 / 100

=> SI = 2872 x 9 /100

=> SI = 25848 /100

=> SI = 258.48

New Balance = Principal + Simple Interest

=> New Balance = 359 + 258.48

=> New Balance = 617.48

Answer 2

Total- 617.48 Interest- 258.48

Explanation:

First, we need to find out what 8% of 359 is.

.08 times 359 = 28.72. This is how much interest is gained in a year. Since she waited 9 years, we multiply 28.72 by 9 and get 258.48. This is the total interest.

Now we just add 258.48 and 359 to get 617.48.