Question

Sam deposits $1,000 into an account that pays 6% simple interest annually. He plans to take the money out after 3.5 years. What will the balance in his account be after 3.5 years?

Answer 1

Answer:

$1210

Step-by-step explanation:

The solution is one thousand two hundred ten dollars. p is one thousand dollars. r is six percent. t is three point five years. Multiplying, the interest earned is two hundred ten dollars.

To find the balance, add the principal, one thousand dollars, to the interest earned, two hundred ten dollars. This equals one thousand two hundred ten dollars.

Answer 2

Well, the formula for simple interest is 

$I=prt$

"I" is interest, "p" is the principal, "r" is the rate, and "t" is the time.

If you substitute the numbers, you get

$I=1,000(0.06)(3.5)$

When you multiply them together, you get 

$I=210$

So, the simple interest for 3.5 years is $210.

But, in order to get the total balance, you have to add the interest and the principal together.

$B=1000+210 \\ B=1210$

So, the balance after 3.5 years is $1,210.