Question

If $200 is put in the bank and each year the account earns 7% simple interest, then how much interest will be earned in three years

Answer 1

The interest earned in three years would be $42.

Explanation:

Interest = Principal × Rate × Time

Principal = $200

Rate = 7% or 0.07 (written as a decimal)

Time = 3 years

Interest = $200 × 0.07 × 3

Interest = $42