Question

Round answers to the nearest cent. 1. John is going to invest $100 in an account for 3 years. If the account earns 6% simple interest, how much interest can he expect to earn?

Answer 1

Data:

Principal: $100

Time: 3 years

Simple interest: 6%

You can find the interest John earn whit the next formula for simple interest:

`I=P\cdot r\cdot t`

P is principal, r is the rate of interest in decimals and t is time.

`\begin{gathered} I=100\cdot(6)/(100)\cdot3 \\ \\ I=18 \end{gathered}`Then, John will earn $18 after 3 years