Question

. Erin deposited $1,300 into a savings account that earns6% simple interest for 3 years.

Answer 1

The simple interest formula is:

A = P(1 + rt)

where A is the final amount, P is the principal, r is the annual interest rate (as a decimal) and t is time in years.

Substituting with P = 1,300, r = 0.06 and t = 3, we get:

A = 1,300(1 + 0.06*3)

A = 1,300*1.18

A = 1,534

The final amount will be $1,534