Question

Find the total amount returned for a 6-year investment of $3700 at a simple annual rate of 2.23%

Answer 1

The simple interest formula is:\[I=Prt\]where I is the interest, P is the principal amount, r is the interest rate, and t is the time.

So for this problem:\[I=($3700)(.0223)(6)=?\]

Answer 2

That will give you the amount of interest earned in 6 years at 2.23%. Add that to the principal amount to see the total amount the account will have after 6 years.