Question

Edward deposited $6,500 into a savings account 4 years ago. The simple interest rate is 5%. How

much money did Edward earn in interest?
Substitute the values into the equation.
Interest=$• • years
Edward earned $ in interest.

Answer 1

Edward earned $1300 interest in 4 years.

Explanation:

Principal Amount = Initial Investment = $6500

Time t = 4 years

Interest rate r = 5% = 0.05 (it is taken in decimal i.e 5/100 = 0.05)

We need to find interest.

The formula used is:
`Interest= Principal* r * t`

Putting values and finding Interest

`Interest= Principal* r * t\\Interest=6500* 0.05 * 4\\Interest= 1300`

So, the interest = $1300 in 4 years.

Edward earned $1300 interest in 4 years.