Question

Pamela has an account at the bank that pays 3.5% simple interest. how much interest will she earn in 6 years on her deposit of $4500?

Answer 1

The amount of simple interest earned is $945

Here, we want to get the amount of interest that would be earned after 6 years

We use the simple interest formula for this

This is as follows;

`\begin{gathered} \text{Simple Interest = }(PRT)/(100) \\ \\ P\text{ is principal (amount deposited) = \$4,500} \\ R\text{ is the interest rate which is 3.5\%} \\ T\text{ is the time which is 6 years} \\ \\ \text{Substituting these values, we have} \\ \text{Simple interest = }(4500*3.5*6)/(100) \\ \\ \text{Simple interest = \$945} \end{gathered}`