Question

Gary deposits $3,700 in an account that pays 2.15% simple interest. He keeps the money in the account for three years, but doesn't make any deposits or withdrawals. How much interest will he receive after the three years?

Answer 1

Gary will receive $238.35 in interest after the three years.

Step-by-step explanation:

The formula to calculate simple interest is:

Interest = Principal x Rate x Time

In this case, Gary deposited $3,700 in an account that pays 2.15% simple interest for three years.

To find the interest he will receive, we plug in the values into our formula:

Interest = $3,700 x 0.0215 x 3 = $238.35

Therefore, Gary will receive $238.35 in interest after the three years.