Question

Eli won $200 in a spelling contest. His mother opened a savings account for him so he could save for a laptop computer. If the bank offers a simple annual interest rate of 4%, how much interest will Eli earn over 3 years?

Answer 1

24

Explanation:

Answer 2

Interest will Eli earn over 3 years is $24 .

Explanation:

Formula

`Simple\ interest = (Principle* Rate* Time)/(100)`

As given

Eli won $200 in a spelling contest.

His mother opened a savings account for him so he could save for a laptop computer.

f the bank offers a simple annual interest rate of 4%.

Principle= $200

Rate = 4%

Time = 3 years

Putting all the values in the formula

`Simple\ interest = (200* 4* 3)/(100)`

`Simple\ interest = (2400)/(100)`

Simple interest = $24

Therefore interest will Eli earn over 3 years is $24 .