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
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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
