Ratios, Proportions, and Percerts 25 Serena Finding the interest and future valu, of asinp- Ispulal To be able to 90 on a trip to South America, Donna decides to save for 3 years. She opens a savings account with \( \$ 700 \). The account pays simple interest, at an annual rate of \( 2 \% \). She doesn't make arry more deposits. Answer the following questions. If necessary, refer to the lisi of financial formulas- (a) How much total interest will Donns earn? \( \$ \) \( \square \) (b) Whet the total amount in the account be (including interest)? \( \$ \) \( \square \)

To find the total interest Donna will earn, we can use the formula for simple interest: \( I = P \times r \times t \), where \( I \) is the interest, \( P \) is the principal amount, \( r \) is the annual interest rate (as a decimal), and \( t \) is the time in years. So for Donna, that’s \( I = 700 \times 0.02 \times 3 = \$42 \). Now, to find the total amount in the account after 3 years, add the interest to the principal: \( A = P + I \). In Donna's case, \( A = 700 + 42 = \$742 \). **Final Answers:** (a) Total Interest: \( \$42 \) (b) Total Amount in Account: \( \$742 \)