Question

velma invested $5400 in a savings account with a yearly interest rate of 4% for 7 years. How much simple interest did she earn?

Answer 1

5400*0.04(rate)=216

Because it's simple interest for 7 years, 216*7 should be the answer

So $1512

Answer 2

Answer: Simple interest = $1512

Explanation:

Given: The principle amount (P)=$5400

The rate of interest (r)= 4%=0.04

Time (t)= 7 years

The formula to calculate the simple interest is given by :-

`S.I.=Prt\\\\\Rightarrow\ S.I.=\$5400*0.04*7\\\\\Rightarrow\ S.I.=\$1512`

Therefore, the simple interest earned by Velma = $1525