Question

Terry deposits $200 into a bank account that earns 3% simple interest per year. What is the total amount in the account after 2 years?

Answer 1

Well first you have to solve for the 1st year so 200*.03, .03 represents the 3%. Which would equal 6 dollars so after the 1st year he would have 200+6=206.

Now you do the second year so do 206*.03, which would equal 6.18 so 206+6.18=212.18

Answer= 212.18