Question

Mr. Thompson plans invest. $7500 in a savings account that earns 2.75% simple annual interest. If you make some no other deposits or withdrawals how much money will Mr.Thompson’s account be worth after 10 years?

Answer 1

I = p r t

Investment = principal × rate × time (in years)

So in this case, we do not know what the total investment is so we know everything to the right of the equal sign)

I = 7500 (how much he invests in) × 0.0275 (2.75%) × 1 (annual interest)

7500 × 0.0275 = 206.25 × 1 = 206.25

So 206.25 is I
(206.25 = 7500 × 0.0275 × 1)

Hope this helps!