Question

Jake deposits $220 in an account every year on his birthday. The account earns 3.2% simple interest and the interest is sent to him at the end of each year. He makes no other deposits or withdrawals. Complete the table.

Answer 1

At the end of the 2nd yr his balance is $440, = I = $14.08
At the end if the 3rd yr his balance is $600, = I = $21.12
$200 is deposited at the beginning of each year
End if the 1st yr SI = PRT/100 = 220 X 3.2 X 1/100 = $7.04
Start of the 2nd yr $220 + $220 = $440
End of the 2nd yr: SI = PRT/100 = 440 X 3.2 X 1/100 = $14.08
Start of the 3rd yr $440 + $220 = $660
End of the 3rd yr: SI = PRT/100 = 660X 3.2 X 1/100 = $21.12
At the end of th2 2nd yr his balance is 440, = I = $14.08
At the end if the 3rd yr his balance is $600, = I = $21.12
HE now has $660 in his account and has earned a total of 42.24 interest over the 3 years.