Answer: 117,000
The formula for simple interest is A=P(1+rt)
A is the final amount
P is the initial amount
r is the rate
t is the amount of time
If you plug the information given into the formula:
3,000(1+1.3•30)=120,000
3,000 is the initial amount
1.3 is the rate
30 is the amount of time
120,000 is the final amount
The question asks how much interest the customer will earn, not what the final amount in the account will be.
Given that, you would subtract the initial amount to find out how much the customer earned.
120,000-3,000=117,000
hope this helps!
