Answer:
Account balance=$1,278
Interest amount=$378
Step-by-step explanation:
First we calculate the total interest accrued after a given amount of time;
I=P×r×t
where;
I=interest amount after time (t)
P=principal amount
r=annual interest rate
t=number of years
In our case;
P=$900
r=6%=6/100=0.06
t=7 years
replacing;
Simple interest (I)=900×0.06×7=$378
Interest earned=$378
Account balance=Principal amount+Interest earned
where;
Principal amount=$900
Interest earned=$378
Replacing;
Account balance=(900+378)=$1,278
Account balance=$1,278
