Question

Cortez invests $2500 at a rate of 7.5. What will her balance be at the end of three years?

Answer 1

principle = $2500
rate = 7.5 %
time = 3 years
simple interest = (principle  × rate × time)÷100
= (2500 × 75 × 3)÷(100×10)
= $562.5
amount = principle + simple interest
= $2500 + $562.5
= $ 3062.5

Answer 2

Let the principal be = P = 2500
                     Time  = t = 3
          Rate of Interest = 7.5%= 7.5/100
Balance after three years = P ( 1+ rt)
                                         = 2500 ( 1+ 7.5*3/100)
                                         = 3065.5
Cortez's balance would be  $ 3065.5