Question

Carlos earns a 12% simple interest per year on

the deposit in his bank. If he made a deposit
of $4,000, how much would he eam, in dollars,
after 3 years?

Answer 1

$5440 (in total) or $1440 (in interest)

Explanation:

12% of $4000= $480

480×3= $1440

4000+1440= 5440

Answer 2

$1,440

Explanation:

Interest = principal x rate x time

I = 4000(.12)(3)

I = 1440