Question

Luke puts $500 into a savings account that earns 6% simple interest each year. How much money will be in the account after 3 years

Answer 1

= $90

Explanation:

I = prt

I = 500 x 0.06 x 3

I = $90

Answer 2

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Answer:

$590

Explanation:

The account balance is given by ...

A = P(1 +rt) . . . . simple interest rate r for t years

A = $500(1 +0.06×3) = $590

There will be $590 in the account after 3 years.