Scott deposits $1,000 in an account that earns 5% simple interest. What will the account be worth after two years?
1,000 * 0.05 = $50
2 * 50 = 100
1,000 + 100 = 1,100
can you help me ms.sue
Already posted.
Can you answer the question using the formula: I=Prt
To find the worth of the account after two years with simple interest, we can use the formula:
A = P(1 + rt)
Where:
A is the final amount (worth of the account)
P is the principal amount (initial deposit)
r is the interest rate
t is the time period (in years)
In this case, Scott deposits $1,000 (P = $1,000) and the account earns 5% interest (r = 5%) for two years (t = 2). Plugging these values into the formula:
A = 1000(1 + 0.05 * 2)
A = 1000(1 + 0.1)
A = 1000(1.1)
A = $1,100
Therefore, the account will be worth $1,100 after two years.