213k views
2 votes
Terrence deposited $5,720 in a bank account with an annual interest rate of 6%. How much interest was earned in 4 years?

a. $1,372.80

b. $1,448.00

c. $1,492.80

d. $1,520.80

1 Answer

1 vote

Final answer:

Terrence will earn a total interest of $1,372.80 on his deposit of $5,720 at a 6% annual interest rate over 4 years using the simple interest formula. This is option (a) among the choices provided.

Step-by-step explanation:

Terrence deposited $5,720 in a bank account with an annual interest rate of 6%. To find out how much interest will be earned in 4 years with simple interest calculation, you can use the formula: Interest (I) = Principal (P) × Interest Rate (r) × Time (t).

In this case, the principal (P) is $5,720, the rate (r) is 6% or 0.06 as a decimal, and the time (t) is 4 years.

I = P × r × t
I = $5,720 × 0.06 × 4
I = $1,372.80

Therefore, the total interest earned after 4 years is $1,372.80, which corresponds to option (a).

User JstRoRR
by
8.6k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories