Question

How much simple interest is earned on $490 deposited in the bank for 9 months at 4%? You would earn $___ in interest.

Answer 1

To calculate the simple interest earned on the deposit, use the formula Simple Interest = Principal x Rate x Time. In this case, the interest earned is 14.70.

Step-by-step explanation:

To calculate the simple interest earned on the deposit, you can use the formula:

Simple Interest = Principal x Rate x Time

Where:

• Principal is the amount deposited (490 in this case)
• Rate is the interest rate per time period (4% or 0.04, as a decimal)
• Time is the number of time periods (9 months or 0.75 years)

Using the formula, the simple interest earned would be:

490 x 0.04 x 0.75 = 14.70