Question

miguel deposits $680 in an account that pays 3% simple interest. if he neither adds more money nor withdraws any money, what amount will be in the account after 6 years?
show your work.

Explanation:

Step1: Identify the formula for simple interest

The formula for simple interest is \(I = Prt\), where \(P\) is the principal amount, \(r\) is the annual interest rate (in decimal form), and \(t\) is the time in years. The amount \(A\) in the account after \(t\) years is \(A=P + I=P(1 + rt)\).
Given \(P = 680\), \(r=0.035\) (since \(3.5\%=3.5\div100 = 0.035\)), and \(t = 6\).

Step2: Substitute the values into the formula

Substitute \(P = 680\), \(r = 0.035\), and \(t = 6\) into the formula \(A=P(1+rt)\).

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Step3: Calculate the final amount

\(680\times1.21=822.8\)

Answer:

The amount in the account after 6 years is \(\$822.8\)