Question

Tracy deposited $59 into a bank account that earned 3.5% simple interest each year. If no money was deposited into or withdrawn from the account, how much money was in the account after ​ 1 1/2​ years? Round your answer to the nearest cent.

Answer 1

The answer is 62.10.

Answer 2

Answer

Find out the how much money was in the account after $1\frac{1}{2}$ years.

To prove

Formula

$Simple\ interest = \frac{Principle\times Rate\times time}{100}$

As given

Tracy deposited $59 into a bank account that earned 3.5% simple interest each year.

Principle = $59

Rate = 3.5 %

$Time = 1\frac{1}{2}$

i.e

$Time = \frac{3}{2}$

Time = 1.5 years

Put all the values in the equation

$Simple\ interest = \frac{59\times 3.5\times 1.5}{100}$

                                 =  \frac{309.75}{100}[/tex]

                                = $3.1(approx)

Amount in the account = Principle + Simple interest

                                      = $59 + $ 3.1

                                      = $ 62.1

1 Dollar = 100 cent

Now convert $62.1 into cent.

= 62.1 × 100

= 6210 cent

Therefore the money in the account is 6210 cent .