Answer:
He earned $114 in interest.
The final amount in the account is $874
Step-by-step explanation:
Initial balance (b): $760
Interest rate (i): 0.05
Period (n): 3 months
Simple interest applications yield the same amount in interest every period. Therefore, the total simple interest earned can be defined by:
[tex]I = n*B*i\\I= 3*760*0.05\\I=114[/tex]
The final amount (A) in the account is the initial balance plus the interest earned in 3 months.
[tex]A = 760 +114\\A=874[/tex]
He earned $114 in interest and the final amount in the account is $874
