Respuesta :
The simple interest is given by the following formula:
[tex]I=\frac{P\cdot r\cdot t}{100}[/tex]Where I is the interest earned after t years, P is the principal (the initial value or money invested), r is the rate of interest and t is the time in years.
The known data is:
P=$5,000
r=1.7%
t=20 years
By replacing it into the formula we can find I:
[tex]I=\frac{5,000\cdot1.7\cdot20}{100}=\frac{170,000}{100}=1,700[/tex]a. In 20 years the customer will earn $1,700 interest
b. The account balance after 20 years will be:
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