Question

You deposit $200 in an account that earns simple interest at an annual rate of

6.5%. How much money is in the account after 3 years?

Answer 1

Interest = $39

Explanation:

The formula for calculating simple interest is:

Interest = Principal x Rate x Time

Put in the numbers and calculate:

Interest = 200 x 6.5% x 3

Interest = 200 x 6.5/100 x 3

Interest = 13 x 3

Interest = $39

Therefore the money made in the account after three years is $39.