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james deposits $12,500 into savings account that earns 4.5% annual simple interest. Assuming he doesn't make any additional deposits or withdrawals, how much interest should Jmaes expect to earn at the end of the year ?

User Joel Hager
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1 Answer

1 vote

Answer:

James is expected to earn $562.5 at the end of the year as Interest.

Explanation:

Here, the amount deposited = Principal = $12,500

Rate of Interest = R = 4.5%

Time = T = 1 year

Now, to find the interest at the end of the year:


\textrm{Simple Interest} = (P * R * T)/(100)

or, S I =
(12,500 * 4.5 * 1 )/(100)  = 562.5

or, S I = $562.5

Hence, James is expected to earn $562.5 at the end of the year as Interest.

User Heather Hins
by
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