Question

Lester deposits $80 into a new savings account. The account earns 6.5% simple interest per year. No money is added or removed from the savings account for 3 years. What is the total amount of money in her savings account at the end of 3 years?

Answer 1

$~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \ 80\\ r=rate\to 6.5\%\to \frac{6.5}{100}\dotfill &0.065\\ t=years\dotfill &3 \end{cases} \\\\\\ A=80[1+(0.065)(3)]\implies A=80(1.195)\implies A=95.6$