Question

Sara has 3000 to invest for 2 years she invest the money in a bank that pays simple interest at the rate of 7.5 per year calculate how much interest she will have at the end of two 2 years

Answer 1

450

Explanation:

A = P(1 + rt)

A = final amount

P = initial principal balance

r = annual interest rate

t = time(in years)

Given,

P = 3000

t = 2 years

r = 7.5% = 7.5/100 = 0.075

A = 3000(1 + 0.075*2) = 3450

Interest = 3450 - 3000 = 450