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3 years ago

Thomas invested $1498 at 6% simple interest per annum

Mathematics

1 answer:

Snezhnost [94]3 years ago

8 0

Answer:

$44.94 interest in 6 months
$1767.64 balance in 3 years

Step-by-step explanation:

a) The simple interest is given by the formula ...

I = Prt

where P is the principal invested at rate r for t years. Putting the given values in the formula, we find ...

I = $1498·0.06·(6/12) = $44.94 . . . . interest earned in 6 months

b) The account balance in 3 years will be the initial principal amount plus earned interest.

A = P(1 +rt) = $1498(1 +0.06·3) = $1767.64 . . . . balance after 3 years

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