Question

Marsha deposited $5,000 into a savings account 3 years ago. The simple interest rate is 4%. How much money did Marsha earn in​ interest?

Answer 1

Amount of interest = $600

Explanation:

Given:

Deposited p = $5,000

Number of year n = 3

Interest rate r = 4% = 0.04

Find:

Amount of interest

Computation:

Amount of interest = P(r)(n)

Amount of interest = 5,000 x 3 x 0.04

Amount of interest = $600