Question

How much interest will you earn if you deposit $2,700.00 into a simple interest account at 6.25% per annum for 3 years?

Answer 1

Explanation:

TEP 1: Find an interest by using the formula , I=P.i.t where I is interest, P is total principal, i is rate of interest per year, and t is total time in years.

In this examplee P = $2700, i = 6.25% and t = 3 years, so

I=506.25

STEP 2: Find an amount by using the formula . A= P+I

Since P = $2700 and I = $506.25 we have,

A=I+P

A=3206.25