<h3>A) The amount at the end of 3 years is $4960</h3><h3>B) Rate of interest is 8 % per annum</h3><h3>C) Yvonne would have had $120 more should the rate were 1% greater</h3>
<em><u>Solution:</u></em>
Given that,
Yvonne put $4,000 in a savings account
At the end of 3 years, the account had earned $960 in simple interest
<h3><u>A. how much does she have in her account at the end of 3 years</u></h3>
Amount = principal + simple interest earned
Amount = 4000 + 960
Amount = 4960
Thus the amount at the end of 3 years is $4960
<h3><u>B. at what annual simple interest rate did the account grow?</u></h3>
Rate of interest = ?
Simple interest is given by formula:
Where,
p is the principal
n is the number of years
r is the rate of interest
Thus rate of interest is 8 % per annum
<h3><u>c. how many more dollars would she have in her account if the interest rate were 1% greater</u></h3>
If the rate was 1% more, R = 8 + 1 = 9% per annum
First find the simple interest for 9 % per annum
Thus,
amount = simple interest + principal
amount = 1080 + 4000 = 5080
Therefore,
Amount more = $5080 - $4960 = $120
She would have had $120 more should the rate were 1% greater.