How much money is in the account after 3 years?

Question

You deposit $500 in an account that earns simple interest at an annual rate of 3.2%.

How much money is in the account after 3 years?

Answer 1

Hi Autumn M.

$548

Simple Interest is

I=PRT

P = Principal your initial deposit

R = Interest Rate

T = Time in years

Your balance would be your initial deposit plus the interest earned after the three years

P = 500

R = 0.032

T = 3 years

Calculate the interest

I = 500*0.032*3 = 48

Add the interest to the initial deposit for the balance

500 + 48 = $548

I hope this helps.