Question

Khalid invested $9500 in a savings account with a yearly interest rate of 3% for 8 years. How much simple interest did he earn?

Answer 1

So simple interest, you don't compound anything, you will always add 3% from $9500 and it will not change. The equation will look like this:

9500*[1+(0.03*8)]
giving us 9500*1.24 = $11,780

Answer 2

$2280

Explanation: