Question

Mo puts $1,600.00 into savings bonds that pay a simple interest rate of 3.5%. How much money will the bonds be worth at the end of 3.5 years?

Answer 1

$~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \ 1600\\ r=rate\to 3.5\%\to \frac{3.5}{100}\dotfill &0.035\\ t=years\dotfill &3.5 \end{cases} \\\\\\ A=1600[1+(0.035)(3.5)]\implies A=1600(1.1225)\implies A=1796$