Problem 58 - Algebra and Trigonometry

Question

Write an original word problem that can be solved using a linear equation. Then solve the problem.

Step-by-Step Solution

Answer

Liam will have $530 after 3 years.

Step 1: Understand the problem

In this scenario, Liam has $500 in his savings account. The bank adds an interest of 2% per annum to the account and he wants to know the total amount after 3 years. The formula for simple interest is \(I = PRT\), where \(P\) is the principal amount, \(R\) is the rate of interest and \(T\) is time.

Step 2: Insert the values into the formula

The principal \(P\) is $500, the rate \(R\) is 2% (or 0.02 as a decimal), and time \(T\) is 3 years. Insert these values into the simple interest formula to get: \(I = 500 * 0.02 * 3\).

Step 3: Calculate the simple interest

Multiply the values together to calculate the simple interest: \(I = 500 * 0.02 * 3 = \$30\). This means that the interest earned over 3 years is $30.

Step 4: Calculate the total amount

To find out the total amount of money Liam will have after 3 years, we need to add the principal amount to the calculated interest: Total = Principal + Interest = $500 + $30 = $530