Question

2.Each year on the same day, Susan deposits $100 into a savings account that earns simple interest at a rate of 3%. She makes no withdrawals. How much interest has Susan’s account earned after 2 years?3.Each year on the same day, Susan deposits $175 into a savings account that earns simple interest at a rate of 3.5%. She makes no withdrawals. How much interest does Susan’s account earn after 5 years?

Answer 1

In this case, we'll have to carry out several steps to find the solution.

Step 01:

Data

P = $100

r = 3% = 0.03

t = 2 years

Step 02:

Simple Interest = P * r * t

= 100 * 0.03 * 2

= 6

The answer is:

Susan earned $6 as simple interest after 2 years.