Question

Hayden invested $750 for 3 years at an interest rate of 0.035 how much interest did he earn in that time

Answer 1

$78.75

Explanation:

Answer 2

78.75 (simple) 81.54 (compound)

Explanation:

Simple interest without compounding : I = P * (1 + rt) -P

I: interest P: primary investment r: annual rate t: time in year

I = =750 * (1+ 0.035*3) -750 = 78.75

Compound interest I = （P *（1 +r）^ t）-P

I' = 750*(1+0.035)*(1+0.035)*(1+0.035) - 750 = 81.54