Question

alice has $60,000 in a savings account that earns 2.7% interest per year. the interest is not compounded. how much will she have in total in 3 years?

Explanation:

Step1: Identify the formula for simple interest

The formula for simple interest is $I = P \times r \times t$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal), and $t$ is the time in years. The total amount $A$ is $A = P + I$.

Step2: Convert the interest rate to decimal

The interest rate $r = 2.7\% = \frac{2.7}{100} = 0.027$.

Step3: Calculate the interest

Given $P = 60000$, $r = 0.027$, and $t = 3$. Substitute into the interest formula: $I = 60000 \times 0.027 \times 3$. Calculate $60000 \times 0.027 = 1620$, then $1620 \times 3 = 4860$.

Step4: Calculate the total amount

Add the principal and the interest: $A = 60000 + 4860 = 64860$.

Answer:

64860