Question

Casey deposited $1,550 in a bank account that earned simple interest at an interest rate of 4%. How much interest, in dollars, was earned in 6 years?

Answer 1

$372

Explanation:

From the given problem, we have the following:

• The amount deposited, Principal = $1,550

,

• The interest rate, r = 4%

,

• Time = 6 years

To determine the amount of interest earned, at simple interest, we use the formula below:

`$$Simple\: Interest=(Principal* Rate* Time)/(100)$$`

Substitute the given values:

`\begin{gathered} Simple\:Interest=(1550*4*6)/(100) \\ =\$372 \end{gathered}`

The interest that was earned in 6 years is $372.