a. The interest earned will be $36.
b. The account balance will be $336.
Step-by-step Explanation:
Step 1:
The initial amount put into the account was $300.
This account has an interest rate of 4% every year. So we must calculate how much 4% of $300 is.
4% of $300 = [tex]\frac{4}{100} (300) = 0.04 (300) = 12.[/tex]
Step 2:
So for every year, the interest of $12 is added into the account. To calculate total interest we multiply this interest amount and the number of years.
So after 3 years [tex]= 3(12) = 36.[/tex]
So account balance after 3 years [tex]300+36 = 336[/tex].
So the interest earned is $36 and the account balance is $336 after three years.
