Edward deposited 9500$ into a savings account 3 years ago. The simple interest rate is 2%. What would be his new account balance? How much money did he earn in interest?
The simple interest formula is:
I = P * r * t
Where:
I = interest earned
P = principal amount
r = interest rate
t = time
Using the formula, we have:
I = 9500 * 0.02 * 3 = $570
The interest earned is $570.
To calculate the new account balance, we add the interest earned to the principal:
New balance = 9500 + 570 = $10,070
Therefore, Edward's new account balance is $10,070.