Question

Mike's savings account earns 1% simple interest every week. If he starts his account with $600, what will the balance in the account be after two weeks?​

Answer 1

Answer:

$612

Step-by-step explanation:

Simple interest does not allow for interest-on-interest and is only based on the principal amount (original amount). The formula for simple interest is I=P⋅r⋅t, with I being interest, P being the principal, r being the interest rate, and t being the amount of times interest has added. By plugging in everything you know, you get

I = 600⋅0.01⋅2

The rate is 0.01 because 1% converted into a decimal is 0.01. After multiplying all the numbers, you'll find that the total amount of interest he gains is $12. Add that to his principal of $600 and you'll see that Mike now has $612 in his savings account after two weeks.