Question

Wally's grandmother started a college savings account for him with

$3,000. What is the total amount of money in the account after 5 years if
the annual simple interest rate is 3%?
I need this plz help explain the proses thx ASAP

Answer 1

$450

Explanation:

You want to calculate the interest on $3000 at 3% interest per year after 5 year(s).

The formula we'll use for this is the simple interest formula, or:

Where:

P is the principal amount, $3000.00.

r is the interest rate, 3% per year, or in decimal form, 3/100=0.03.

t is the time involved, 5....year(s) time periods.

So, t is 5....year time periods.

To find the simple interest, we multiply 3000 × 0.03 × 5 to get that:

The interest is: $450.00

Usually now, the interest is added onto the principal to figure some new amount after 5 year(s),

or 3000.00 + 450.00 = 3450.00.