Question

Gabby has $1,506 in a savings account that pays 2.5% simple interest. How much interest will she earn in 3 years?

Answer 1

I = PRT ; P=$1506 , R=2.5% , T=3 years

I = (1506)(.025)(3)
I = 37.65 (3)
I = $112.95

Answer 2

$112.95

Explanation:

Use the simple interest formula, I = prt

Plug in the initial amount, interest rate, and number of years

I = prt

I = (1506)(0.025)(3)

I = 112.95

So, the interest created in 3 years is $112.95