Bonnie deposits $70.00 into a new savings account. • The account earns 4.5% simple interest per year. • No money is added or removed from the savings account for 3 years. What is the total amount of money in her savings account at the end of the 3 years?
After the first year, Bonnie will have earned 4.5% of $70.00, which is $3.15 in interest. So, her balance will be $73.15.
After the second year, she will earn 4.5% interest on the new balance of $73.15. This works out to be $3.29 in interest, bringing her balance to $76.44.
After the third year, she will earn 4.5% interest on the new balance of $76.44. This works out to be $3.44 in interest, bringing her final balance to:
$76.44 + $3.44 = $79.88
Therefore, the total amount of money in Bonnie's savings account at the end of the 3 years is $79.88.