Answer:
principal interest total money in account
at the end of year
Year one $100 $4.5 $104.5
year two $200 $ 9 +$4.5 $ 213.5
year three $300 $ 9 +$4.5 + $13.5 $ 327
Step-by-step explanation:
Simple interest for any principal is given by
I = p* r* t/100
I = interest rate accrued on principle amount
p is the amount deposited
r is the rate of interest
t is the time period of saving
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For year one
p = $100
r = 4.5%
t=1
I = 100*4.5*1/100 = 4.5
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For year two $100 more is added to already existing $100 in account.
p = 100 +100 = $200
r = 4.5%
t=1
I = 200*4.5*1/100 = 9
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For year two $100 more is added to already existing $200 in account after two years.
p = 100 +100 +100 = $300
r = 4.5%
t=1
I = 300*4.5*1/100 = 13.5
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There fore total money in Margo account is
$300 saving deposited by her
$4.5 + $9 + $13.5 = $27 (interest accrued in three time)
Formulating the results in tabular form
principal interest total money in account
at the end of year
Year one 100 4.5 104.5
year two 200 9 +4.5 213.5
year three 300 9 +4.5 + 13.5 327
