Question

Pahola invests $3,500 in a money market account.The simple interest rate on her investment is 3.65%.How much will pahola's account be worth in 4 years?

Answer 1

Given:

Principal = $3500

Rate of simple interest = 3.65% = 0.0365

Time = 4 year

To find:

The amount.

Solution:

The formula for simple interest is

`I=P* r* t`

where, P is principle, r is rate of interest and t is time in years.

Substituting P=3500, r=0.0365 and t=4, we get

`I=3500* 0.0365* 4`

`I=511`

Now,

`Amount=P+I`

`Amount=3500+511`

`Amount=4011`

Therefore, the amount after 4 years in pahola's account is $4011.