Marsha deposited 10,000 dollars into a savings account 3 years ago. The simple interest rate is 2%. How much money did she earn in interest? What would be her new account balance?
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Marsha deposited 10,000 dollars into a savings account 3 years ago. The simple interest rate is 2%. How much money did she earn in interest? What would be her new account balance?
Deposit = 10,000
Balance at end of 1st year —> 10,000 x 1.02 = 10,200
Balance at end of 2nd year —> 10,200 x 1.02 = 10,404
Balance at end of 3rd year —> 10,404 x 1.02 = 10,612.08 <— new balance
10,612.08 – 10,000 = 612.08 <— total interest
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