Question

Katty went online and visited website for a bank to check the interest rates on savings accounts. For $750 deposit, she can earn 4.5% for 3 years at the bank. Calculate the interest earned. *

Answer 1

After 3 years she will have earned $101.25 in interest and her total amount of money will be $851.25

Explanation:

In order to find the amount of money earned you first have to multiply 4.5% in decimal form by 750. From this you get 33.75. This is the amount of interest earned in one year.

Then you have to multiply the interest of one year by 3, since she will be keeping the money in the account for a 3 year minimum. This equals 101.25. $101.25 the money she will have earned over interest after 3 years.

To get the total amount of money she will have earned in her account you have to add 101.25 to 750 which has a sum of $851.25.

Hope this helps :)