• anonymous
1. Julia deposited $250 in a savings account that earns 2.7% simple interest. How much interest has Julia earned by the end of the first year? $6.75 $92.59 $256.75 $675.00 2. Armand deposited $389.42 in a savings account that earns 3.2% simple interest. What is Armand’s account balance after seven years? $87.23 $401.88 $476.65 $872.30 3. Andy deposited $1,567.12 in a savings account that earns 1.9% simple interest. What will Andy’s account balance be in nine months? $1,567.12 $1,589.45 $1,596.90 $1,835.10
  • Stacey Warren - Expert
Hey! We 've verified this expert answer for you, click below to unlock the details :)
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
  • chestercat
I got my questions answered at in under 10 minutes. Go to now for free help!
  • whpalmer4
Interest earned with simple interest is just PV * i * t where PV is present value (the balance at the start of the problem), i is the interest rate expressed as a decimal (so divide the percentage by 100, 2.3% = 2.3/100 = 0.023), and t is the number of years (be sure to convert to years if you get something else). To find a future balance (FV), FV = PV + PV*i*t 1. PV = $250, i = 2.7% = 0.027, t = 1 interest earned = PV*i*t = $250*0.027*1 = $6.75 Easy, right? 2. PV = $389.42, i = 3.2% = 0.032, t = 7 Here we want to find the FV, not the interest earned FV = PV + PV*i*t = $389.42 + $389.42*0.032*t = 3. PV = $1,567.12, i = 1.9% = 0.019, t = 9 months = 9/12 = 0.75 Note that we had to convert months into years — the answer would be very incorrect if you did not do so! Here we are finding the FV FV = PV + PV*i*t = $1,567.12 + $1,567.12*0.019*0.75 = You have to read these problems carefully to make sure you find the right quantity!

Looking for something else?

Not the answer you are looking for? Search for more explanations.