A new bank customer with $3,000 wants to open a money market account. The bank is offering a simple...

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10. A new bank customer with $3,000 wants to open a money market account. The bank is offering a simple interest rate of 1.1%.
a. How much interest will the customer earn in 20 years?
b. What will be the account balance after 20 years?

SnapAndSolve AI · Accepted Answer

a. The interest earned can be calculated using the simple interest formula: I = PRT, where P is the principal amount ($3,000), R is the rate of interest (1.1% or 0.011), and T is the time in years (20).

I = 3000 * 0.011 * 20 = $660
b. The account balance after 20 years is the sum of the principal and the interest earned.

Balance = Principal + Interest = $3,000 + $660 = $3,660

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A new bank customer with $3,000 wants to open a money market account. The bank is offering a simple...

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