Edward deposited 9500$ into a savings account 3 years ago. The simple interest rate is 2%. How much money did Edward earn in interest? What would be his new account balance?
To find the interest earned, we can use the formula for simple interest, which is I = P * r * t, where I is the interest earned, P is the principal (the initial amount of money deposited), r is the interest rate (in decimal form), and t is the time (in years).
From the problem, we know that P = 9500, r = 0.02 (since 2% is equal to 0.02 as a decimal), and t = 3 years. Plugging these values into the formula, we get:
I = 9500 * 0.02 * 3
I = 9500 * 0.06
I = 570
So Edward earned 570 dollars in interest.
To find his new account balance, we simply add the interest earned to the initial principal:
New balance = principal + interest
New balance = 9500 + 570
New balance = 10070 dollars
So Edward's new account balance would be 10,070 dollars.