Question

Emily deposited $5,000 into a savings account 6 years ago. The simple interest rate is 3%. How much money did Emily earn in interest? *

Answer 1

$900

Explanation:

First, converting R percent to r a decimal

r = R/100 = 3%/100 = 0.03 per year,

then, solving our equation

I = 5000 × 0.03 × 6 = 900

I = $ 900.00

The simple interest accumulated

on a principal of $ 5,000.00

at a rate of 3% per year

for 6 years is $ 900.00.