Question

A new bank customer with ​$5,000 wants to open a money market account. The bank is offering a simple interest rate of ​1.8%.

Answer 1

Answer:

a) 900 dollars

b) 5900 dollars

Step-by-step explanation:

The complete question is

A new bank customer with $5,000 wants to open a money market account. The bank is offering a simple interest rate of 1.8%. a. How much interest will the customer earn in 10 years? b. What will the account balance be after 10 years?

solution

a) The simple interest SI $= P*R*T$

Where P is the principal amount

R is the rate of interest and

T is the time period

Substituting the given values, we get -

SI

$= 5000 *\frac{1.8}{100} *10\\= 900$ dollars

b) Amount is the sum of Principal and simple interest

$A = 5000 + 900 = 5900$ dollars