Step-by-step explanation:
To calculate the total amount of money in the account at the end of 3 years, we can use the formula for simple interest:
Total Amount = Principal + (Principal * Rate * Time)
Given:
Principal (P) = $420
Rate (R) = 5% = 0.05 (in decimal form)
Time (T) = 3 years
Plugging in the values into the formula:
Total Amount = $420 + ($420 * 0.05 * 3)
Total Amount = $420 + ($63)
Total Amount = $483
Therefore, the total amount of money in the account at the end of 3 years would be $483.
