Question

PC

You deposit $200 in an account that earns 4% simple interest. How much interest did you earn in 3 years? (Hint: I = prt)

Answer 1

$24.

Explanation:

Given that I deposited $ 200 in an account that earns 4% simple interest annually, to determine how much interest did I earn in 3 years, the following calculation must be performed:

((200 x 4/100) x 3) = X

((800/100) x 3) = X

(8 x 3) = X

24 = X

Thus, after 3 years of investment I will have earned $ 24 in interest.