Question

Mr. Caldwell opened a savings account with an initial deposit of $560 and will not make any additional deposits or withdrawals. The account earns 2%simple interest. What is the total amount that Mr. Caldwell will have in his account at the end of 3 years?

Answer 1

Answer:

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 amount deposited

R represents interest rate

T represents the duration in years.

From the information given,

P = 560

R = 2%

T = 3 years

I = (560 × 2 × 3)/100 = $33.6

Therefore, the total amount that Mr. Caldwell will have in his account at the end of 3 years is

560 + 33.6 = $593.6