Question

You deposit $900 in a savings account that earn a simple interest rate of 4.5 per year you calculate you will earn 1002 115 in interest over three years is your answer reasonable?

Answer 1

To calculate the simple interest earned on a savings account, use the formula: Interest = Principal * Rate * Time. In this case, the correct amount of interest earned over three years is $121.50, not $1002.115.

Step-by-step explanation:

To calculate the simple interest earned on a savings account, you can use the formula:

Interest = Principal * Rate * Time

In this case, the principal (initial deposit) is $900, the rate is 4.5% (or 0.045 as a decimal), and the time is 3 years. Plugging these values into the formula, we get:

Interest = $900 * 0.045 * 3 = $121.50

Therefore, the correct amount of interest earned over three years is $121.50, not $1002.115. The answer provided is not reasonable.