Question

Rachel is calculating the interest earned on a deposit of $350 in an account that earns 6% simple interest after 15 years. What is the interest earned?

Answer 1

$315

Explanation:

You are going to want to use the simple interest formula for this. The one below is modified for solving the interest earned.

`I = Prt`

I = interest amount

P = principal amount

r = interest rate (decimal form)

t = time

Now we can plug in the values into the equation:

`I = 350(.06)(15)`

`I = 315`

This means that Rachel earned $315 worth of interest in the 15 year period.