Question

alfred deposited $893.78 in a savings account that earns 2.2% simple interest. What is alfreds account balance after seven years?

Answer 1

Hello!  The formula for finding simple interest is prt. That means multiply the principal (initial amount) by the rate (percentage) by time (months or years). The principal is $893.78 and the interest rate is 2.2%. 893.78 * 2.2% (0.022) is 19.66316. Do not delete that number. The time is 7 years. Now multiply that number by 7 in order to get 137.64212 or $137.64 when rounded to the nearest whole hundredth.  Now, let's add both numbers. 893.78 + 137.64 is 1,031.42. There. Alfred's balance after seven years is $1,031.42.