Question

If you have 10000 dollars to deposit in a saving account that earns the simple interest at a rate of 4.5% per year.how much interest will be in the account after 2 years

Answer 1

4.5% of 10,000 is 450. so for the first year you earn 450 in interest. then for year 2 you'll add 10,000 and 450 to get 10,450 and find that 4.5% of that is 470.25. so for the total of interest earned in 2 years is $920.25.