Question

Beatrice deposits $525 in an account that pays 4.3% simple annual interest. If she keeps the money in the account for 12 years, how much interest will she earn? (Answer must include two decimal places; for example "10.00" and not "10".)

Answer 1

Beatrice will earn $270.90 in interest over 12 years.

Step-by-step explanation:

To find the amount of interest Beatrice will earn, we can use the formula for simple interest: Interest = Principal x Rate x Time. In this case, the principal (the initial amount deposited) is $525, the rate is 4.3%, and the time is 12 years.

Using the formula, the interest earned would be: Interest = $525 x 0.043 x 12 = $270.90.

Therefore, Beatrice will earn $270.90 in interest over 12 years.

Answer 2

`~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$525\\ r=rate\to 4.3\%\to (4.3)/(100)\dotfill &0.043\\ t=years\dotfill &12 \end{cases} \\\\\\ I = (525)(0.043)(12) \implies I = 270.90`