You put $500 in an account that earns 4.5% simple interest. Find the balance in the account after 3 years.
that would be
500(1 + 0.045*3) = _________
Interest = Principal times rate times time
I = 500 * 0.045 * 3
Add the interest to the principal.
To find the balance in the account after 3 years with simple interest, we need to use the formula:
Balance = Principal + (Principal * Rate * Time)
Where:
- Balance is the final amount in the account
- Principal is the initial amount you put into the account ($500 in this case)
- Rate is the interest rate per year (4.5% in this case)
- Time is the number of years the money is invested (3 years in this case)
Let's plug in the values into the formula:
Balance = $500 + ($500 * 0.045 * 3)
Calculating the expression inside the parentheses first:
Balance = $500 + ($500 * 0.135)
Now, let's multiply:
Balance = $500 + $67.50
Adding the two amounts together:
Balance = $567.50
Therefore, the balance in the account after 3 years will be $567.50.