Question

Dante invest $ 3500 and earns 2% in simple interest every year. assuming he makes no additional deposits or withdrawals, how much will be in his account after 3 years

Answer 1

The information provided hows an investment that yields a simple interest.

A simple interest is calculated as follows;

$\begin{gathered} I=\text{PRT} \\ \text{Where;} \\ I=\text{interest} \\ P=\text{amount invested} \\ R=\text{rate of yield} \\ T=\text{period in years} \end{gathered}$

Therefore, Dante's investment after 3 years at the rate of 2% (that is 0.02) would be;

$\begin{gathered} I=\text{PRT} \\ I=3500\times0.02\times3 \\ I=210 \\ \text{Amount}=P+I \\ \text{Amount}=3500+210 \\ \text{Amount}=3710 \end{gathered}$

ANSWER:

After 3 years, Dante would have $3,710 in his account