Question

Russell deposited $650 in a savings account that earns 3% simple annual interest. If he makes no other deposits or withdraws, what will the balance of Russell's account be after 6 years?

Answer 1

Try making an equation that you can repeat.

For instance, X * 1.03
take the answer, multiply it by 1.03 five more times and you'll have your answer.

Answer 2

I dont get it

Answer 3

okay, I'll explain further.

You've got X, your current balance. 650 dollars to start, but it gets bigger every year when you get interest right?

That's where the 1.03 comes in, it's a percentage in decimal form. 1=100%, so to add 3% to that, or 103%. That way when you multiply your X by it, it will be increasing by 3% each time instead of giving you 3% of 650.

Take the new number you get, and multiply again until you've done it a total of 6 times or 6 years.

Answer 4

so it would look like this:
650*1.03=669.50

then

669.50*1.03= 689.59

and so on.