Question

You deposit $500 in a savings account for 8 years. How much interest will you earn if the account earns 7% simple interest annually?

Answer 1

$280

Explanation:

500x7%=35

35x8=280

Answer 2

`~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$500\\ r=rate\to 7\%\to (7)/(100)\dotfill &0.07\\ t=years\dotfill &8 \end{cases} \\\\\\ I = (500)(0.07)(8) \implies I = 280`