Question

Bonnie deposits $70.00 into a new savings account

The account earns 4.5 simple interest per year
No money is added or removed from the savings account for three years
What is the total amount of money in her savings account at the end of the three years?

Answer 1

$79.45

Use the simple interest formula

A= P(1+rt)

A = 70(1+0.045×3)

And you solve, which gives you 79.45

Answer 2

$79.45

Explanation:

To find the total amount of money in her account, we can use the following formula:

`\boxed {A = P(1 + rt)}`

where:

A = final amount (?)

P = principal (original) amount ($70.00)

r = interest rate (4.5% = 0.045)

t = time (3 years).

Substituting the values into the formula:

`A = 70(1 + 0.045 * 3)`

=
`70(1.135)`

= $79.45

∴ She has $79.45 in her savings account at the end of three years.