Question

Emarie invested $250. She earned a simple interest of 3%3% per year on the initial investment. If no money was added or removed from the investment, what was the amount of interest Emarie received at the end of four years?

Answer 1

hello

to solve this question, we need to use the formula of simple interest

`\begin{gathered} s\mathrm{}i=p(1+rt) \\ s\mathrm{}i=\text{simple interest} \\ p=\text{principal} \\ r=\text{rate} \\ t=\text{time} \end{gathered}`
`\begin{gathered} s\mathrm{}i=p(1+rt) \\ p=250 \\ r=3\text{ \% = 0.03} \\ t=4 \\ si=250(1+0.03\cdot4) \\ s\mathrm{}i=250(1+0.12) \\ s\mathrm{}i=250*1.12 \\ s\mathrm{}i=280 \end{gathered}`

Emarie would have $280 at the end of four years

her interest would be simple interest - principal

`\begin{gathered} \text{ interest=\$280-\$250} \\ \text{ interest=\$30} \end{gathered}`

at the end of four year, Emarie would have $30 in his account