Question

Devi invested a principal of $2750 in her bank account with an interest rate of 1.5%. How much simple interest did she earn in 3 years?

Answer 1

In 3 years, Devi earned a simple interest of $123.75.

To calculate the simple interest, we use the following formula:

(Principal) • (interest rate) • (time) = simple interest

Plugging the values in, we will find that:

$2,750 (our principal) • 0.015% (our interest rate represented by a decimal) • 3 (our time period in years) = $123.75 (our simple interest)

Ultimately, Devi made an investment and in 3 years earned a simple interest of $123.75.