Question

James puts $3,500 into a savings account that earns 2.5% simple interest. He does not touch that account for 3 years. What would the new balance of the account be after 3 years?

Answer 1

Given :

James puts $3,500 into a savings account that earns 2.5% simple interest.

He does not touch that account for 3 years.

To Find :

The new balance of the account be after 3 years.

Solution :

Interest on $3500 after 3 years is :

$I = \dfrac{P_o\times r\times t}{100}\\\\I = \dfrac{3500\times 2.5\times 3}{100}\\\\I = \ 262.5$

So, new balance of the account after 3 years is $( 3500+262.5 ) = $3762.5  .

Hence, this is the required solution.