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Explanation and answer please :)

Explanation and answer please :)-example-1

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$20,000 is between $15,000 and $49,999, so we'll use the interest rate of 6.5% (see row 3)

r = 6.5% = 6.5/100 = 0.065

We'll use the decimal form of the interest rate as it is most common for financial math problems.

P = 20,000 is the amount deposited

t = 1 year is the amount of time

We will plug those values into the formula

i = P*r*t

to get the following:

i = P*r*t

i = 20000*0.065*1

i = 1300

So Mark earns $1,300 in simple interest each year.

User AndyMac
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