Question

If a bank offers a savings account that pays simple interest rate of 4% and you deposit $475.00 into this account, how much interest will you have earned after 3 years?

a.
$5,700.00
c.
$28.50
b.
$57.00

Answer 1

the answer to that is D, $57.00. 

Answer 2

you get 4% per year. 4% times 3 years is 12 percent. SO you do 475 times 112% for the extra 12 percent. you get 532. lastly, you do 532 subtracting by the starting amount, 475, to get 57 dollars. the answer is b