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?

Answer 1

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.