Question

Sara deposited $390 into the bank. She earned 3% simple interest. What is her balance after 5 years?

Answer 1

Answer:

$448.50

General Formulas and Concepts:

Pre-Algebra

• Order of Operations: BPEMDAS

Statistics

Simple Interest Rate Formula: A = P(1 + rt)

• A is final amount
• P is principal amount
• r is rate
• t is time (in years)

Step-by-step explanation:

Step 1: Define variables

P = 390

r = 0.03

t = 5

Step 2: Find A

1. Substitute:                    A = 390(1 + 0.03 · 5)
2. Multiply:                        A = 390(1 + 0.15)
3. Add:                              A = 390(1.15)
4. Multiply:                        A = 448.50

And we have our final answer!