Question

Rachel is calculating the interest earned on a deposit of $350 in an account that earns 6% simple interest after 15 years.

I= prt
I=350(6)(15)
I=31,500
Rachel calculates the interest earned to be $31,500 as shown in her work above. Find the correct amount of interest earned.

Answer 1

Answer: $315

Explanation:

Answer 2

$315

Explanation:

You are going to want to use the simple interest formula for this. The one below is modified for solving the interest earned.

I = interest amount

P = principal amount

r = interest rate (decimal form)

t = time

Now we can plug in the values into the equation:

This means that Rachel earned $315 worth of interest in the 15 year period.