Question

marsha deposited 9,000 into her savings account 4 years ago. The simple interest rate is 2%. How much money did Marsha earn in interest? what would be her new account balance?

Answer 1

Given:

Principal amount, P = 9,000

Time, T = 4 years

Interest rate, R = 2%

This is a simple interest problem.

To find the amount of Money Marsha earned in interest, apply the Sinple Interest formula:

$\text{Interest = }\frac{P\ast R\ast T}{100}$

Thus, we have:

$\begin{gathered} \text{Interest = }\frac{9000\ast2\ast4}{100} \\ \\ \text{Interest = }\frac{72000}{100}=720 \end{gathered}$

The amount Marsha did earn in interest is 720

To find her new account balance, apply the formula:

$A=\text{ Principal + Interest}$

Thus, we have:

$\begin{gathered} A=9000+720 \\ \\ A=9720 \end{gathered}$

Therefore, her new account balance will be 9,720

ANSWER:

Interest = 720

New account balance = 9,720