SOLUTION: if you deposit $150 in an account that earns simple interest.The annual interest rate is 3.2%. How much interest will you earn in 3 years?

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Question 387756: if you deposit $150 in an account that earns simple interest.The annual interest rate is 3.2%. How much interest will you earn in 3 years?
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
Let x+=+150
Let E = earnings at end of each year
At the end of the 1st year:
E+=+x+%2B+.032x+=+1.032x
At the end of the 2nd year:
E+=+x+%2B+.032x+%2B+.032%2A%28x+%2B+.032x%29
E+=+1.032x+%2B+.032%2A1.032x
E+=+1.032%2A1.032x
E+=+1.032%5E2%2Ax
At the end of the 3rd year:
E+=+1.032%5E2%2Ax+%2B+.032%2A1.032%5E2%2Ax
E+=+1.032%2A1.032%5E2%2Ax
E+=+1.032%5E3%2Ax
Substituting:
1.032%5E3%2A150+=+1.0991%2A150
1.0991%2A150+=+164.866
Interest earned = 164.866+-+150+=+14.87
In 3 years $14.87 interst is earned