You invest $1000 in an account at 2.5% per year simple interest. How much will you have in the account after 3 years? Round to the nearest whole dollar.
A: $3250
B: $1075
C: $1088
D: $1163

Question

You invest $1000 in an account at 2.5% per year simple interest. How much will you have in the account after 3 years? Round to the nearest whole dollar.
A: $3250
B: $1075
C: $1088
D: $1163

texaschic101 · Answer

Interest = Principle * rate * time
I = PRT

P = 1000
R = 2.5% -- change to a decimal = .025
T = 3

now we sub
I = PRT
I = (1000)(.025)(3)
I = 75

so at the end of 3 years, there will be : 1000 + 75 = $ 1075 in the account