Question

Morgan deposits$1870 in an account that pays 2.05% simple interest for 4 years. Round to the nearest cent.

Answer 1

$153.34

Explanation:

Use formula:

`I=P\cdot r\cdot t,`

where I = Interest

P = Principal

r = rate

t = time

In your case,

P = $1,870

r = 0.0205 (or 2.05% as decimal)

t = 4

I = unknown

Hence,

`I=1,870\cdot 0.0205\cdot 4\\ \\I=153.34`