Question

You deposit $500 in an account that earns simple interest at an annual rate of 5.6%.
How much money is in the account after 3 years?(1 point)
$

Answer 1

To calculate the total amount in the account after 3 years with simple interest, you can use the formula:

\[ A = P + I \]

where:

- \( A \) is the total amount in the account after interest.
- \( P \) is the principal amount (initial deposit).
- \( I \) is the interest earned.

The interest \( I \) can be calculated using the formula:

\[ I = P \times r \times t \]

where:

- \( r \) is the annual interest rate (as a decimal).
- \( t \) is the time in years.

Given:
- \( P = 500 \) (the initial deposit)
- \( r = 5.6\% = 0.056 \) (annual interest rate)
- \( t = 3 \) (time in years)

First, calculate the interest:

\[
I = 500 \times 0.056 \times 3
\]

\[
I = 500 \times 0.168 = 84
\]

Now, add the interest to the principal to find the total amount:

\[
A = P + I = 500 + 84 = 584
\]

So, the total amount in the account after 3 years is:

\[
\boxed{584}
\]