Question

extra practice: session 2 for exercises 1 and 2, use the information to answer the questions. quan opens a savings account at the beginning of the year with $950. his savings account has an annual interest rate of 0.5%. 1. if quan doesnt make any additional deposits or withdrawals, how much interest will his account earn by the end of the year? 2. what will be the balance of quans account at the end of the year?

Explanation:

Step1: Identify simple interest formula

The simple interest formula is $I = P \times r \times t$, where $P$ = principal amount, $r$ = annual interest rate (decimal), $t$ = time in years.

Step2: Plug values for Q1

$P = 950$, $r = 0.005$, $t = 1$
$I = 950 \times 0.005 \times 1$
$I = 4.75$

Step3: Calculate balance for Q2

Balance = Principal + Interest
$\text{Balance} = 950 + 4.75$
$\text{Balance} = 954.75$

Answer:

1. The interest earned is $\$4.75$
2. The account balance is $\$954.75$