Answer:
1. money in the account = 400 + 6t where t is the number of years
2. Total cost = principal ( 1+ rate* time)
Step-by-step explanation:
1. The formula for simple interest is I = PRT where
P = principal
R is the interest rate
T is the time in years
I = 400 * .015 * t
I = 6t where t is the number of year
The amount of money in the account is the principal plus the interest
money in the account = 400 + 6t
Since we were not given the time period, I will leave it here.
2. Since we are paying simple interest
The formula for simple interest is I = PRT where
P = principal
R is the interest rate
T is the time in years
We can figure out what the total interest is
Add it to the amount of the principal
The total amount you will pay on the loan is
Total cost = Principal + interest
= principal + principal * rate * time
= principal ( 1+ rate* time)
