Question

SHOW WORK
What interest would be earned by an investment of 4900 at 3.5% for 3 years?

Answer 1

514.5

Explanation:

We will assume SIMPLE INTEREST for this problem.

The formula for simple interest is:

`i=Prt`

Where

i is the simple interest earned

P is the principal

r is the rate of interest (in decimal)

t is the time , in years

Given in the problem,

P = 4900

r = 3,5% = 3.5/100 = 0.035

t = 3 years

Substituting, we find the interest earned:

`i=Prt\\i=(4900)(0.035)(3)\\i=514.5`

The interest earned is 514.5