Question

John puts $1,500 in a savings account that earns 7% simple interest annually. Find the new

balance in his savings account after three years if John does not deposit or withdraw any
money.

Answer 1

$1,815

Explanation:

Use the simple interest formula, I = prt

Plug in the values we know:

I = prt

I = (1,500)(0.07)(3)

I = 315

Add this to the original amount:

1500 + 315

= 1,815

So, John will have $1,815 in his account after 3 years.