Question

A savings account starts with $980 at a simple interest rate of 5.5%. How much interest will the account earn in 3 years?

Answer 1

Interest = $161.70

Explanation:

Formula:

I = Prt

Given:

P = 980

r = 0.055

t = 3

Work:

I = Prt

I = 980(0.055)(3)

I = 53.9(3)

I = 161.7