On 2 November 2006, Henry saved $1200 in an account that pays 8.6% per annum simple interest. Three years later, he added another $500 into the account. Find the amount in his account on 2 November 2012
1200(1+.086*6) + 500(1+.086*3)
or
1200(1+.086*3) + 1700(1+.086*3) = 2900(1+.086*3)
To find the amount in Henry's account on 2 November 2012, we need to calculate the simple interest for the first 3 years and then add it to the initial amount of $1200 plus the additional $500.
To calculate the simple interest, we use the following formula:
Simple Interest = Principal (P) * Rate (R) * Time (T)
In this case, the Principal (P) is $1200, the Rate (R) is 8.6% or 0.086 as a decimal, and the Time (T) is 3 years.
Plugging the values into the formula, we get:
Simple Interest = $1200 * 0.086 * 3 = $309.6
So, the simple interest for the first 3 years is $309.6.
Now, let's add the simple interest, the initial amount, and the additional $500:
Amount in account = Initial amount + Simple interest + Additional amount
= $1200 + $309.6 + $500
= $2009.6
Therefore, the amount in Henry's account on 2 November 2012 would be $2009.6.