Question

Natasha deposits $600 into a bank account that earns 4% simple interest per year. How much interest will she receive after 5 years? Use the formula I=prt

Answer 1

Answer: $120

Explanation:

Formula:

I = prt

where

I = interest

P = principal, Initial amount, or what you started with

r = rate in decimal form

t = years

Given:

P = 600

r= 4% = .04

t=5

Solve for I

I = 600(.04(5)

I = 120