Question

You deposited $100 in a savings account 3 years ago. The simple interest rate is 2.3%. How

much money is in the account after 3 years?

Answer 1

Final Balance = 106.90$

Explanation:

Using the simple interest formula I = prt.

The current balance after accumulated interest is B = I + p.

Given a principle of $100, time of 3 years, and interest rate of 2.3%.

I = (100$)(3y)(2.3%) = (100)(3)(2.3%) = (300)(2.3%) = (300)(0.023) = 6.90$

B (final balance) = 6.90$ + 100$ = 106.90$