3. john’s savings account pays 4% simple interest. if the principal is $2,700, what will the balance be…
3. john’s savings account pays 4% simple interest. if the principal is $2,700, what will the balance be after interest is added? dollars
Answer
Explanation:
Step1: Calculate the interest amount
The simple - interest formula is $I = Prt$. Here, $P=$2700$, $r = 4%=0.04$, and assuming $t = 1$ year. So $I=2700\times0.04\times1 = 108$.
Step2: Calculate the account balance
The balance $A$ is the sum of the principal $P$ and the interest $I$. So $A=P + I=2700+108 = 2808$.
Answer:
2808