Question
po Amelia deposited $2500 in an account that earns 3% simple annual interest. What will her account balance be after 6 years?
Answer
$2950
- Identify the formula for simple interest: I = P * r * t, where I is the interest, P is the principal, r is the rate, and t is the time in years.
- Plug in the relevant information: I = 2500 * 0.03 * 6 = $450.
- Calculate the account balance: Account balance = P + I = 2500 + 450 = $2950.