Question

Find the balance of an account where $3,300 was deposited 3 years ago, earning 4% interest.

Answer 1

SOLUTION

From the question

Principal, P = $3,300

Time, T = 3 years

Rate, R =4%

Using the simple interest formula

$I=\frac{PRT}{100}$

It follows:

$\begin{gathered} I=\frac{3300\times4\times3}{100} \\ I=396 \end{gathered}$

Therefore the total amount in the account is

$\begin{gathered} A=3300+396 \\ A=3696 \end{gathered}$

Therefore the total amount in the account is $3696