Question

Chase deposits $8,671.73 into a savings account that pays a simple annual interestrate of 2.28%. How much interest will he earn after 9 years? Round answer to thehundredths place. If answer doesn't have a hundredths place then include zeros sothat it does.

Answer 1

Explanation:

Simple interest is represented by the following equation:

`\begin{gathered} SI=P*r*t \\ where, \\ P=\text{ Principal amount invested} \\ r=\text{ interest rate} \\ t=\text{ time in years} \end{gathered}`

If the amount deposited was $8,671.73 at a rate of 2.28%. After 9 years there will be:

`\begin{gathered} SI=8,671.73*0.0228*9 \\ SI=\text{ \$1,779.44} \end{gathered}`