Question
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
. The account pays simple interest, at an annual rate of
. 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?
(b) Whet the total amount in the account be (including interest)?
25
Serena
Finding the interest and future valu, of asinp-
Ispulal
(a) How much total interest will Donns earn?
(b) Whet the total amount in the account be (including interest)?
Ask by Cervantes Franklin. in the United States
Mar 11,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
(a) Total interest: $42
(b) Total amount: $742
Solution
Step 1. Calculate the Total Interest Earned
We use the simple interest formula:
where:
-
-
(annual interest rate) -
years
Substitute the values:
So, the total interest earned is
.
Step 2. Calculate the Total Amount in the Account
The total amount is the sum of the initial deposit and the interest earned. Using the formula:
Substitute the values:
So, the total amount in the account is
.
Final Answers
(a) Total interest:
(b) Total amount:
Answered by UpStudy AI and reviewed by a Professional Tutor
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Mind Expander
To find the total interest Donna will earn, we can use the formula for simple interest:
, where
is the interest,
is the principal amount,
is the annual interest rate (as a decimal), and
is the time in years. So for Donna, that’s
.
Now, to find the total amount in the account after 3 years, add the interest to the principal:
. In Donna’s case,
.
Final Answers:
(a) Total Interest:
(b) Total Amount in Account:
(a) Total Interest:
(b) Total Amount in Account: