Question

How much simple interest is earned on $440 deposited in a bank for 3 months at 3%?

Answer 1

$ 440 deposited in a bank for 3 months at 3% will earn $ 3.30 of interest

Explanation:

Let's use the formula of simple interest for answering this question:

I = P * r * t

r = 3% = 0.03

t = 3 months = 3/12 of a year = 0.25 of a year

Replacing with the values we have:

I = 440 * 0.03 * 0.25

I = 3.3

$ 440 deposited in a bank for 3 months at 3% will earn $ 3.30 of interest