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10 September, 09:51

You invest $1000 in an account at 2.5% per year simple interest. How much will you have in the account after 3 years? Round to the nearest whole dollar. A: $3250 B: $1075 C: $1088 D: $1163

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  1. 10 September, 09:55
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    Interest = Principle * rate * time

    I = PRT

    P = 1000

    R = 2.5% - - change to a decimal =.025

    T = 3

    now we sub I = PRT

    I = (1000) (.025) (3)

    I = 75

    so at the end of 3 years, there will be : 1000 + 75 = $ 1075 in the account
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