Question

3. RETIREMENT Mr. Ram has $410,000 in a

retirement account that earns 3.85%
simple interest each year.


Find the amount
of interest earned after 5 years.

Answer 1

Lets turn 3.85% into a decimal first. Multiply 0.0385 with 410,000 which gives you 15785. Add that to 410,000 which gives you 425785. Multiply 3.85 by 425785. Repeat that process 5 times until you get the amount of interest earned after 5 years.