Respuesta :
The total amount in savings after 3 years is $ 4749.75
Solution:
Sonia and Jake received $4,500 in gift money and deposited it into a savings account that pays 1.85% simple interest
To find: Amount after 3 years
The total amount after 3 years is given as:
total amount = principal amount + simple interest
The simple interest is given as:
[tex]\text {simple interest }=\frac{\text { principal } \times \text { number of years } \times \text {rate of interest }}{100}[/tex]
Here principal amount = $ 4500
Rate of Interest = 1.85%
Number of years = 3 years
Substituting the above values in formula we get,
[tex]\text { simple interest }=\frac{4500 \times 1.85 \times 3}{100}[/tex]
[tex]\text {simple interest }=45 \times 1.85 \times 3=249.75[/tex]
Thus simple interest = $ 249.75
total amount = principal amount + simple interest
total amount = 4500 + 249.75
total amount = $ 4749.75
Thus the total amount after 3 years is $ 4749.75
