How much interest will Hannah earn in 4 years if she deposits $630 in a savings account at 6.5% simple interest

Question

asked Mar 27, 2019 143k views

2 Answers

Marcell Erasmus · Answer 1 · 2019-03-27T23:11:57+0000

Interest rate (simple), i = 0.065
Present value, P = 630
number of periods (years), n = 4
Interest earned in 4 years
= Pin
= 630*0.065*4
= $163.8

Alan Pierce · Answer 2 · 2019-04-03T07:24:03+0000

Answer: $163.8

Explanation:

Given : Principal amount : P= $630

Time: t = 4 years

The rate of interest :r= 6.5%

which can be written in decimal form as 0.065

The formula use to find the simple interest is given by :-

$\text{I=Prt}\\\\\Rightarrow\ I= 630*0.065*4\\\\\Rightarrow\ I=163.8$

Hence, the simple interest earned by Hannah = $163.8