Question

Sonja and Jake just 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?

Answer 1

$4,500.00
at an interest rate of 2.85%
In 3 years
Amount: $4,895.82

Answer 2

The total amount accrued, principal plus interest, from simple interest on a principal of $4,500.00 at a rate of 2.5% per year for 3 years is $4,837.50.

Given Data

Principal = $4,500

Rate = 2.85%

Time = 3 years

Final Amount A = ??

I = A - P = $337.50

Equation:

A = P(1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 2.5%/100 = 0.025 per year.

Solving our equation:

A = 4500(1 + (0.025 × 3)) = 4837.5

A = $4,837.50

Learn more about simple interest here:

https://brainly.com/question/20690803