Question

Mike deposited $6.500 into a savings account 4 years ago. The

simple interest rate is 3%. How much money did Mike earn in
interest?

Answer 1

• $780

Explanation:

We know that:

• PRT/100 = Interest

Work:

• 6500 x 4 x 3/100 = Interest
• => 65 x 4 x 3 = Interest
• => $780 = Interest

Hence, the interest mike earned is $780.

Answer 2

• $780

Explanation:

Given:

• Deposit P = $6500
• Interest rate r = 3% = 0.03 simple
• Time t = 4 years

Use simple interest formula:

• I = Prt
• I = 6500*0.03*4 = 780