82.5k views
24 votes
a teacher invested $600 in an account that paid 2% annual simple interest the teacher did not maker any additional deposits or withdrawals. What is the total amount of interest paid by this investment at the end of 3 years?

User Nukalov
by
8.3k points

1 Answer

8 votes

Answer:

$36.00

Explanation:

The formula for simple interest is I = P x r x t where P is the principal amount, $600.00, r is the interest rate, 2% per year, or in decimal form, 2/100=0.02, and t is the time involved, 3....year(s) time periods. So t is 3....year time periods. To find the simple interest, we multiply 600 × 0.02 × 3 to get that the interest is $36.00 . Usually now, the interest is added onto the principal to figure some new amount after 3 year(s), or 600.00 + 36.00 = 636.00.

User Andrewsi
by
9.5k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories