Question

Jeremy put $1250 into his savings account, which pays 5% per year simple interest and left it htere for 3 years. Using A as the total amount in the bank at the end of three years, write an algebraic equation that describes this transaction

Answer 1

Since this is simple (not compound) interest and the period is for three years and interest would be calculated annualy.

A=1.05($1250)+1.05(1.05($1250))+1.05(1.05)(1.05)$1250