Question

gary deposits 3700 in an account that pays 2.15% simple interest he keeps the money in the account for 3 years but doesn’t make any deposits or withdrawals how much interest will he receive after three years

Answer 1

Answer:

238.65

Step-by-step explanation:

To find the simple interest we use the formula:

A = P(1 + rt)

Let's break down all the variables that we have.

P = 3,700

r = 2.15% or 0.0215

t = 3

So let's put all our variables into the formula.

A = P(1 + rt)

A = 3,700(1 + (0.0215)(3))

A = 3,700(1 + 0.0645)

A = 3,700(1.0645)

A = 3938.65

Gary will have a total of 3938.65 in his account after 3 years. Now to find how much he made in interest, we simply subtract the total after 3 years to his initial amount.

Interest = 3938.65 - 3700

Interest = 238.65