Question

A new bank customer with 4,500 wants to open a money market account. The bank is offering a simple interest rate of 1.9. How much interest will the customer earn in 10 years?

Answer 1

$855

Explanation:

The formula for simple interest is I = PRT where I is the interest paid/earned, P is the principal amount deposited/invested, R is the rate as a decimal, and T = time in years.

I = PRT

I = (4500)(0.019)(10)

I = $855