Question

Athena deposits $500 into a savings account that earns 5.4% simple interest. She will not make any additional deposits or withdrawals. How much interest will Athena earn at the end of 3 years?

Answer 1

Interest earned= $81

Explanation:

Giving the following information:

Athena deposits $500 into a savings account that earns 5.4% simple interest.

Number of periods= 3 years

To calculate the interest earned, we need to use the following formula:

I= P*r*t

P= principal

t= number of periods

I= 500*0.054*3

I= $81