Question

Marsha deposited 7,500 into a savings account 3 years ago. The simple interest rate is 5%. How much money did Marsha earn in interest

Answer 1

$1,125 in interest.

Explanation:

We need the formula of I = P * i * t where P is the total principle, i is the rate of interest per year, and t is the total time in years.

So we have

P = $7,500

i = 5%

t = 3 years

I = 7500 * 0.05 * 3

I = 1,125 (Interest)

Now we need to find the amount using A = P + I

A = 7,500 + 1,125

A = 8,625

Therefore $8,625 is our total. While our interest is $1,125.