Question

Mary had $220 in her Christmas Club Account which earned 4% APR simple interest for the year. Calculate the amount of interest which she earned after 6 years.

Answer 1

Since we know that
`\text{Simple interest}=(PRT)/(100)`, where P is principle amount, R is interest rate and T is time.

Now let us substitute our given information in simple interest formula.

`\text{Simple interest}=(220\cdot4\cdot6)/(100)`

`\text{Simple interest}=(5280)/(100)`

`\text{Simple interest}=52.80`

Therefore, Mary will earn $52.80 after 6 years.