Question

Tamara invested $15,000 in an account that pays 4% annual simple interest. Tamara will not

make any additional deposits or withdrawals. How much Interest will Tamara earn on her
Investment at the end of 3 years?
F $1,800
G $600
H $450
J $1.873

Answer 1

F. $1800

Explanation:

Simple interest means that a percent of the initial amount will be paid back each year, this amount will not change from year to year. To calculate the simple interest over a given unit of time, multiply the amount by the interest rate in decimal form, then multiply that value by the time span that this was taken over. The result will be the amount earned.

The following formula can be used to describe this scenario,

`simple\ interest=(time)((amount)(interest\ rate))`

Substitute,

`=(3)((15000)(4))`

To convert a percent to decimal form, divide the percent by (100)

`=(3)((15000)(0.04))`

`=(3)(600)\\\\=1800`

Answer 2

F $1800

Explanation:

First, converting R percent to r a decimal

r = R/100 = 4%/100 = 0.04 per year,

then, solving our equation

I = 15000 × 0.04 × 3 = 1800

I = $ 1,800.00

The simple interest accumulated

on a principal of $ 15,000.00

at a rate of 4% per year

for 3 years is $ 1,800.00.