Question

$54,000 at 3% for 4 years

Answer 1

I believe you are solving for Interest.

The equation in which you use is: I = P(r)(t), in which:

I = Interest

P = Principle (54000)

r = Interest rate (3%) = (0.03)

t = Time (4 years)

Set the equation:

I = (54000)(0.03)(4)

Simplify:

I = 6480

The amount of interest earn is $6480, bringing the total amount to $60480

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