Question

You deposit $450 into a bank account. The bank pays a simple interest rate of 3% per year. How much interest have you earned after one year? Give your answer in dollars and cents to the nearest cent. Do not include the dollar sign in your answer.

Answer 1

$13.5

Step-by-step explanation

we need to use the fomrula, Simple Interest is calculated using the following formula:

`SI=P* R* T`

, where P = Principal, R = Rate of Interest, and T = Time period

*rate in decimals

Step 1

let

Principal : $450

rate : 3 % =0.03

time perido=1 year

now, replace

`\begin{gathered} SI=P* R* T \\ SI=450\cdot0.03\cdot1 \\ SI=13..5 \end{gathered}`

hence, after one year you have earned $13.5 interest

I hope this helps you