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Answer the following questions10. How much interest will be earned in 3 years from $730placed in a savings account at 6.5% simple interest?

Respuesta :

Compound Interest Formula

[tex]A=P\times(1+rt)[/tex]

where A is the accrued amount, P is the principal amount, r the rate, and t the time.

From our problem we can get:

• P = $730

,

• r = 6.5% = 0.065

,

• t = 3

Replacing them in the formula:

[tex]A=730\times(1+(0.065)\times(3))[/tex]

Simplifying:

[tex]A=730\times(1+0.195)[/tex][tex]A=730\times(1.195)[/tex][tex]A=872.35[/tex]

Answer: $872.35

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