Final answer: The account balance after earning simple interest of $200 at a 3% rate for 5 years is $1533.33. This is calculated by first determining the principal amount and then adding the interest earned to this principal. Explanation: The question pertains to calculating the total account balance after earning simple interest. The given parameters are a simple interest of $200, an interest rate of 3%, and a duration of 5 years. To solve this, we first need to find the principal amount that would yield $200 as interest over 5 years at a rate of 3%. Using the formula for simple interest: Now, to calculate the total future amount: Total future amount = Principal + Interest Therefore, the account balance after earning simple interest for 5 years at a 3% rate is $1533.33.
Interest (I) = Principal (P) imes Rate (R) imes Time (T)
We have:
$200 = P imes 0.03 imes 5.
To find the principal (P), we rearrange the equation:
P = $200 / (0.03 imes 5)
P = $200 / 0.15
P = $1333.33 (approximately).
Total future amount = $1333.33 + $200
Total future amount = $1533.33.
FAQs
An account earn simple interest $200 at 3% for 5 years what is the account balance - brainly.com? ›
The account balance after earning simple interest of $200 at a 3% rate for 5 years is $1533.33.
When you deposit $200 in an account that earns simple interest at an annual rate of 3? ›The crediting of cash flows connected with an investment or deposit is referred to as "simple" interest. Given that you deposit $200 in an account that earns simple interest at an annual rate of 3%. Therefore, the account balance after 3 years will be $218.
What is the simple interest earned in one year if the principal is $350 in the interest rate is 3%? ›The simple interest rate earned in one year is $10.5.
What is an account earns simple annual interest $350 at 3 for 10 years? ›Expert-Verified Answer
The interest earned is $105. b. The balance of the account is $455.
Simple Interest Formula
Thus, if simple interest is charged at 5% on a $10,000 loan that is taken out for three years, then the total amount of interest payable by the borrower is calculated as $10,000 x 0.05 x 3 = $1,500. Interest on this loan is payable at $500 annually, or $1,500 over the three-year loan term.
Answer: The simple interest on a loan of $200 at 10 percent interest per year is $20.
What is the simple interest on a principal of 100 for 2 years at the rate of 5 per annum? ›Answer: SI = 100 rate= 5℅ time= 2 years. 100x100/5x2= 200/10= 20 Rs. so, amount= p+I = 20+100= 120 Rs ans.
How do you calculate simple interest earned? ›Simple Interest is calculated using the following formula: SI = P × R × T, where P = Principal, R = Rate of Interest, and T = Time period. Here, the rate is given in percentage (r%) is written as r/100.
What is the formula for simple interest and principal amount? ›The formula is SI = P × R × T / 100, where SI is the simple interest, P is the principal, R is the interest rate, and T is the time in years. To find the principal in simple interest, rearrange the formula: P = SI × 100 / (R × T).
What is the simple interest of a loan for $1000 with 5% interest after 3 years? ›Formula: Simple Interest (SI) = Principal (P) x Rate (R) x Time (T) / 100. Example: If you invest $1,000 with a 5% annual interest rate for 3 years, you'd earn $150 in simple interest.
How much would be earned on a $300 deposit earning 4% simple interest for 5 years? ›
Final answer:
The amount earned on a $300 deposit earning 4% simple interest for 5 years is $60.00.
Expert-Verified Answer
The required simple interest earned on the account is given as $292.5.
If your money is in a savings account earning 3% a year, it will take 24 years to double your money (72 / 3 = 24). If your money is in a stock mutual fund that you expect will average 8% a year, it will take you nine years to double your money (72 / 8 = 9).
What is the annual interest rate if you deposit $400 in an account the account earns $18 simple interest in nine months? ›Answer and Explanation:
So, the interest rate is 6% annually.
Expert-Verified Answer
It will take 12.5 years to double the amount of $100,000 with a rate of 8%.