Question

Simple Interest Round answers to the nearest cent. 1. John is going to invest $100 in an account for 3 years. If the account earns 6% simple interest, how much interest can he expect to earn?

Answer 1

Given Data:

The initial investment is: P=$100

The total period of investment is: t=3

The annual interest is: 6%.

For the simple interest, the expression to calculate the interest in t years is,

`I=(P*(r)/(100))* t`

Here r is in percentage.

Substitute known values in the above expression.

`\begin{gathered} I=(100*(6)/(100))*3 \\ =(6)*3 \\ =18 \end{gathered}`

Thus, the total intrest for 3 years will be $18.