Question

A savings account accrues interest at a rate of 3.0% yearly. If someone opens an account with $2,500, how much money would the account have after 4 years?

Answer 1

To answer the question above we first need to know how much is the interest per year. In equation, 3% of $2500 is 75. 75 per year in 4 years is 300. So add $300 to the principal amount, the money after 4 years would be $2800.