Question

Ben deposited $650 from his pressure washing business into a savings account. The simple interest rate paid by the bank is 3.5%. If Ben makes no deposits or withdrawals, how much interest will he earn in 4 years?

Answer 1

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Answer:

$91

Explanation:

The amount of interest earned is given by the formula ...

I = Prt

where P is the invested amount at rate r for t years.

Filling in the given values, we find the interest to be ...

I = $650·0.035·4 = $91

Ben will earn $91 interest in 4 years.