Question

you have to deposit $10000 into a savings account that earns simple interest at a rate of 4.5% per year. how much interest will be in the account after 2 years

Answer 1

900

You deposited 10,000 into your savings account, have a rate of 4.5% (which will now be .045), and you need to know how much interest you'll have after 2 years, all in simple interest.

so, you need to use the formula: I=P*r*t

P= the money you deposited or invested

r= the rate

t= is the time, preferably in years

This would be what you mulitply: 10,000*.045*2=

900.

so you will have $900 in simple interest after 2 years