Yvonna put $4,000 in a savings account. At the end of 3 years, the account had earned $960 in simple interest.

a. How much does she have in her account by the end of 3 years?
b. At what annual simple interest rate did the account grow? Show your work.
c. How many more dollars would she have in her account if the interest rate were 1% greater? Show your work.

Question

Yvonna put $4,000 in a savings account. At the end of 3 years, the account had earned $960 in simple interest.

a. How much does she have in her account by the end of 3 years?
b. At what annual simple interest rate did the account grow? Show your work.
c. How many more dollars would she have in her account if the interest rate were 1% greater? Show your work.

anonymous · Answer

$$S.I = \frac{ P \times R \times R \times T }{ 100 }$$
S.I=Simple Interest
P=Principal
R=Rate
T=Time