after 1 year , the balance of Theodoro's account
After 3 years the balance a
Explanation
Simple interest is a quick and easy method of calculating the interest charge on a loan. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments.
[tex]I=p\cdot r\cdot t[/tex]where I is the interes monye created,P is the starting amount of money and t is the time
then,
Let
after one year
t=1
r=3.6%=0.036
P=2500
Now, replace
[tex]\begin{gathered} I=p\cdot r\cdot t \\ I=2500\cdot0.036\cdot1 \\ I=90 \end{gathered}[/tex]so, after 1 year he has 90 of interest, so the total is
[tex]\begin{gathered} for\text{year}1=2500+90=2590 \\ \end{gathered}[/tex]so
after 1 year , the balance of Theodoro's account
Step 2
for year 2
let t= 2
replace
[tex]\begin{gathered} I=p\cdot r\cdot t \\ I=2500\cdot0.036\cdot2 \\ I=180 \end{gathered}[/tex]so, for year 2, the total is
[tex]\begin{gathered} \text{for year 2} \\ \text{account balance=2500+180} \\ \text{account balance=2680} \end{gathered}[/tex]and so on
Now, for year 3
[tex]\begin{gathered} \text{for year 3} \\ let\text{ t=3} \\ I=p\cdot r\cdot t \\ I=2500\cdot0.036\cdot3 \\ I=270 \end{gathered}[/tex]so, for year 3
[tex]\text{account balance=2500+270=2770}[/tex]