Question

Yolanda deposited $3,000 into an account that earns 42%

simple annual interest. Calculate the interest Yolanda will earn
after six years.

Answer 1

Yolanda will earn $7,560 in simple interest after six years on her $3,000 deposit at a 42% annual rate.

Step-by-step explanation:

Yolanda deposited $3,000 into an account that earns a 42% simple annual interest rate. To calculate the interest she will earn after six years, we use the formula for simple interest: I = PRT, where I is the interest, P is the principal amount (initial amount), R is the rate of interest per year, and T is the time in years.

Using the values given:

• P (Principal) = $3,000
• R (Rate) = 42% or 0.42 in decimal form
• T (Time) = 6 years

We get:

I = $3,000 × 0.42 × 6 = $7,560

Therefore, Yolanda will earn $7,560 in interest after six years.