Question

Mrs. lockwood invests $2,900 in a savings account that pays 4.25% simple interest per year. if she does not add or withdraw money from the account, how much interest will she earn after 6 years?

Answer 1

Mrs. Lockwood will earn $737.25 in simple interest after 6 years.

Step-by-step explanation:

To calculate the simple interest earned, we can use the formula:

Simple Interest = Principal (P) * Rate (R) * Time (T)

Given that Mrs. Lockwood invests $2,900 at a rate of 4.25% per year for 6 years, we can plug in these values into the formula:

1. P = $2,900
2. R = 4.25% = 0.0425 (convert percentage to decimal)
3. T = 6

Using the formula, we can calculate the simple interest:

Simple Interest = $2,900 * 0.0425 * 6 = $737.25

Therefore, Mrs. Lockwood will earn $737.25 in simple interest after 6 years.