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)?

Ask by Cervantes Franklin. in the United States

Mar 11,2025

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)?

Ask by Cervantes Franklin. in the United States

Mar 11,2025

UpStudy AI · Accepted Answer

**Step 1. Calculate the Total Interest Earned**

We use the simple interest formula:

$$
I = P \times r \times t
$$

where:
- $$ P = 700 $$
- $$ r = 0.02 $$ (annual interest rate)
- $$ t = 3 $$ years

Substitute the values:

$$
I = 700 \times 0.02 \times 3 = 700 \times 0.06 = 42
$$

So, the total interest earned is $$ \$42 $$.

---

**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:

$$
A = P + I
$$

Substitute the values:

$$
A = 700 + 42 = 742
$$

So, the total amount in the account is $$ \$742 $$.

---

**Final Answers**

(a) Total interest: $$ \$42 $$

(b) Total amount: $$ \$742 $$
(a) Total interest: \$42 (b) Total amount: \$742