Question

Moises deposited $2,850 in an account that pays 4.39% simple interest for three years. What is the total amount of interest earned?

Answer 1

The total simple interest earned on a deposit of $2,850 at a rate of 4.39% for three years is $375.285.

Step-by-step explanation:

To calculate the total amount of simple interest earned on a deposit of $2,850 at a simple interest rate of 4.39% for three years, we use the formula for simple interest:

I = P × r × t,

where I is the interest, P is the principal amount, r is the interest rate per period, and t is the time the money is invested for.

For Moises's deposit:

• P = $2,850
• r = 4.39% or 0.0439 (as a decimal)
• t = 3 years

Substitute the values into the formula:

I = $2,850 × 0.0439 × 3

I = $375.285

So, the total interest earned is $375.285.