Question

You receive an inheritance of $15,500, and you place the full amount into a bank account. The bank pays a simple interest rate of 7.5% per year. How much interest have you earned after three years? Give your answer in dollars to the nearest dollar.

Answer 1

348,750 dollars in 3 years

Explanation:

You inheritanced 15,500 dollars. You put that into a account which has a 7.5% interest rate for one year. 15,500 x 7.5 = 116,250 a year. now you want to know how much that'll be in 3 years multiply 116,250 x 3 = 248,750.

(I'm sorry if this is incorrect i tried doing the math correctly!)

Answer 2

Explanation:

I = P x r x t

p=15500

i=7.5% must change to decimal of 0.075

t= 3 (years)

In this case

I= 15,500 X 0.075 X 3= 3,487.5

(1, 162.5 x 3)= 3487.5

Solved to nearest dollar of 3,488