banking royce deposits $1200 into a savings account that has an annual simple interest rate of 1.1%. after…

banking royce deposits $1200 into a savings account that has an annual simple interest rate of 1.1%. after one year, he deposits another $1200 into the account. how much interest will royce have earned at the end of the first year? how much total interest will royce have earned at the end of the second year? what is the total amount in royce’s account at the end of the second year?

banking royce deposits $1200 into a savings account that has an annual simple interest rate of 1.1%. after one year, he deposits another $1200 into the account. how much interest will royce have earned at the end of the first year? how much total interest will royce have earned at the end of the second year? what is the total amount in royce’s account at the end of the second year?

Answer

Explanation:

Step1: Calculate first - year interest

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. For the first year, $P = 1200$, $r=0.011$ (since $1.1%=0.011$), and $t = 1$. $I_1=1200\times0.011\times1 = 13.2$

Step2: Calculate second - year interest

The principal for the second - year calculation is the sum of the initial deposit and the second deposit, $P_2=1200 + 1200=2400$. Using the simple - interest formula with $r = 0.011$ and $t = 1$, the interest for the second year $I_2=2400\times0.011\times1=26.4$. The total interest earned at the end of the second year is the sum of the first - year interest and the second - year interest, $I_{total}=I_1 + I_2=13.2+26.4 = 39.6$.

Step3: Calculate the total amount in the account

The total amount $A$ in the account is the sum of the total principal ($1200 + 1200$) and the total interest earned. The total principal is $1200+1200 = 2400$, and the total interest is $39.6$. So, $A=2400 + 39.6=2439.6$.

Answer:

13.2 39.6 2439.6