79.2k views
4 votes
Find the amount of interest earned by depositing $220 into an account that earns 4% interest for one year.

O $880
$55
O $8.80
O $5500

User Cyber
by
7.9k points

1 Answer

4 votes

Answer:

To find the amount of interest earned by depositing $220 into an account that earns 4% interest for one year, we can use the simple interest formula:

Interest = Principal * Rate * Time

Where:

Principal = $220 (the amount deposited)

Rate = 4% (expressed as a decimal, so 0.04)

Time = 1 year

Plugging in these values, we get:

Interest = $220 * 0.04 * 1

Interest = $8.80

Therefore, the amount of interest earned by depositing $220 into an account that earns 4% interest for one year is $8.80.

User JoshuaDavid
by
8.1k points