Chapter 7.7, Problem 10E

To determine

To calculate: the interest and balance of the account after $\text{4}\text{.5years}$

Answer to Problem 10E

The interest is $\$72.9$ and balance of the account after is $\$672.9$

Explanation of Solution

Given information: $P=\$600,r\text{=2}\text{.7\% simple interest per year },t=4.5\text{years}$

Concept Used:

Simple interest problem requires the use of the following formula:

  $\begin{array}{l}I=Prt\\ A=P+I\end{array}$

Calculation:

As per the given problem

  $P=\$600,r\text{=2}\text{.7\% simple interest per year },t=4.5\text{years}$

Substitute the values in the formula

  $\begin{array}{l}I=Prt\\ \Rightarrow I=600\times \frac{2.7}{100}\times 4.5\\ \Rightarrow I=72.9\end{array}$

And

  $\begin{array}{l}A=P+I\\ \Rightarrow A=600+72.9\\ \Rightarrow A=672.9\end{array}$

The interest is $\$72.9$ and balance of the account after is $\$672.9$

Conclusion:

The interest is $\$72.9$ and balance of the account after is $\$672.9$