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Kanye deposits 3850 at 8% annual simple interest for 1 year how much interest will he earn

1 Answer

4 votes

Answer:

308

Explanation:

We are given;

  • Money deposited (Principal) as 3850
  • Annual rate of interest as 8%
  • Period or time = 1 year

We are required to determine the interest accrued;

  • We are going to use the formula of calculating simple interest;
  • Simple interest = (P × R × T)/100

Where P is the principal, R is the rate while T is the time.

Therefore;

Simple interest = (3850 × 8 × 1) ÷ 100

= 308

Therefore, the money earned simple interest of 308 within 1 year

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