Chapter 8: Q35. (page 406)

For an account that earns simple annual interest, find the interest and the balance of the account.
$P = $ 850, r = 3 %, t = 6 years$

Short Answer

Expert verified

Interest: $153

Balance of the account: $1003

Step by step solution

Step 1. Given Information.

Account details: $P = $ 850, r = 3 %, t = 6 years$

Step 2. Concept Used.

Simple interest formula - $I = P \cdot r \cdot t$ , where,

I = Amount of interest,

P = Principal amount,

r= Annual interest rate in decimal form,

t = Time in years.

Step 3. Calculation.

Let us convert our given interest rate in decimal form as shown below:

$\begin{matrix} 3 % = \frac{3}{100} \\ = 0.03 \end{matrix}$

Upon substituting our given values in simple interest formula, we will get:

$\begin{array}{l} I = P \cdot r \cdot t (Simpleinterestformula) \\ I = $ 850 \cdot 0.03 \cdot 6 (Substitutinggivenvalues) \\ I = $ 153 \end{array}$

Therefore, the amount of interest would be $153.

We know that final amount is account is principal amount plus amount of interest.

$\begin{array}{l} Finalamount = Principal + Amountofinterest \\ Finalamount = $ 850 + $ 153 \\ Finalamount = $ 1003 \end{array}$

Step 4. Conclusion.

The balance of the account would be $1003.

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For an account that earns simple annual interest, find the interest and the balance of the account.
$P = $ 850, r = 3 %, t = 6 years$

Short Answer

Step by step solution

Step 1. Given Information.

Step 2. Concept Used.

Step 3. Calculation.

Step 4. Conclusion.

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For an account that earns simple annual interest, find the interest and the balance of the account.P=$850,r=3%,t=6years

Short Answer

Step by step solution

Step 1. Given Information.

Step 2. Concept Used.

Step 3. Calculation.

Step 4. Conclusion.

One App. One Place for Learning.

Most popular questions from this chapter

Recommended explanations on Math Textbooks

Mechanics Maths

Probability and Statistics

Geometry

Theoretical and Mathematical Physics

Discrete Mathematics

Pure Maths

Study anywhere. Anytime. Across all devices.

For an account that earns simple annual interest, find the interest and the balance of the account.
$P = $ 850, r = 3 %, t = 6 years$