Question

Samantha and Luke got married. They received $4,500 in gift money and deposited it into a savings account that pays 2.85% simple interest. How much will they have in savings after 3 years?
Group of answer choices

$384.75

$4,884.75

$9,000.00

$38,475.75

Answer 1

Answer: $4,884.75

Step-by-step explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the amount deposited.

P represents the principal or amount deposited.

R represents interest rate

T represents the duration of the savings in years.

From the given information,

P = 4500

R = 2.85

T = 3 years

I = (4500 × 2.85 × 3)/100 = $384.75

The total amount that they will have in savings after 3 years is

4500 + 384.75 = $4884.75