Piper deposited $734.62 in a savings account that earns 2.6% simple interest. What is Piper’s account balance after seven years?

Question

anonymous · Answer

Interest = $734.62 x .026 x 7 = $133.70
Balance = $734.62 + $133.70 = $868.32

anonymous · Answer

can you explain me how do you have $868.32

anonymous · Answer

Since 2.6% = 0.026, to calculate one year of simple interest, we use the initial amount of money, called principal, multiply by the interest rate to get
$734.62 x 0.026
Next, the interest in 7 year is
$734.62 x 0.026 x 7 = $133.70
Keep in your mind that $133.70 is the interest in 7 years.
To find the balance or the principal + interest, we add them
Balance = $734.62 + $133.70 = $868.32