Note: Enter your answer and show all the steps that you use to solve this problem in the space provided. Yvonne put $4,000 in a savings account. At the end of 3 years, the account had earned $960 in simple interest. a. How much does she have in her account at the end of 3 years? b. At what annual simple interest rate did the account grow? C. How many more dollars would she have in her account if the interest rate were 1% greater?

Question

Joanna

Mathematics

25 November, 15:56

Note: Enter your answer and show all the steps that you use to solve this problem in the space provided. Yvonne put $4,000 in a savings account. At the end of 3 years, the account had earned $960 in simple interest. a. How much does she have in her account at the end of 3 years? b. At what annual simple interest rate did the account grow? C. How many more dollars would she have in her account if the interest rate were 1% greater?

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Answers (1)

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Jon Molina · Answer 1

a) $4,960

b) 8% per annum

c) $120

Step-by-step explanation:

a) 4000 + 960 = $4960

b) 960 : 3 = 320 per year

320/4000 * 100 = 8%

c) 1% more per year:

1% of 4000 = 40

3 years: 120

So $120 more