Question

Holly opened a savings account at a local bank. She deposited $1,300.00 into the account 6 years ago. If the account earns an annual simple interest rate of 6.8%, how much interest has she earned?

Answer 1

Interest = $530.4

Explanation:

We know:

Interest = Principal x Rate x Time

First, put in the numbers:

Interest = $1,300 x 6.8% x 6 years

Interest = $1,300 x
`(6.8)/(100)` x 6 years

Interest = $13 x 6.8 x 6 years

Interest = $88.4 x 6

Interest = $530.4