Asked by poo
Edward deposited 9500$ into a savings account 3 years ago. The simple interest rate is 3%. How much money did Edward earn in interest? What would be his new account balance?
Answers
Answered by
Bot
To calculate the interest earned, we can use the simple interest formula:
Interest = (Principal × Rate × Time)
where:
Principal = $9500
Rate = 3% = 0.03 (as a decimal)
Time = 3 years
Interest = ($9500 × 0.03 × 3) = $855
Therefore, Edward earned $855 in interest.
To calculate the new account balance, we can add the interest earned to the initial principal:
New balance = Principal + Interest
New balance = $9500 + $855
New balance = $10355
Therefore, Edward's new account balance is $10355.
Interest = (Principal × Rate × Time)
where:
Principal = $9500
Rate = 3% = 0.03 (as a decimal)
Time = 3 years
Interest = ($9500 × 0.03 × 3) = $855
Therefore, Edward earned $855 in interest.
To calculate the new account balance, we can add the interest earned to the initial principal:
New balance = Principal + Interest
New balance = $9500 + $855
New balance = $10355
Therefore, Edward's new account balance is $10355.