Question

if $875 is put in the bank and each year the account earns 9% simple interest, then how much interest will be earned in four years?

Answer 1

The amount of interest that would be earned in four years is;

`\text{ \$315}`

Step-by-step explanation:

Given that $875 is put in the bank and each year the account earns 9% simple interest;

`\begin{gathered} \text{ Principal P = \$875} \\ \text{rate r = 9\% = 0.09} \end{gathered}`

To calculate the interest in four years;

`t=4\text{ years}`

Applying the simple interest formula;

`i=P* r* t`

substituting the given values;

`\begin{gathered} i=\text{ \$875}*0.09*4 \\ i=\text{ \$315} \end{gathered}`

Therefore, the amount of interest that would be earned in four years is;

`\text{ \$315}`