Question

You deposit $500 into a bank account that pays 2% simple interest. You leave the money in the account for 3 years and no additional money is added or withdrawn. How much money will you have in the account at the end of the three ywars? (The formulafor simple interest is I=Prt)

Answer 1

$\bf ~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \ 500\\ r=rate\to 2\%\to \frac{2}{100}\dotfill &0.02\\ t=years\dotfill &3 \end{cases} \\\\\\ I=(500)(0.02)(3)\implies I=30~\hfill \stackrel{\textit{total amount in the account}}{500+30\implies 530}$