Question

Penny deposits $800 into a bank account for 5 years. If the account has a 6% yearly simple interest rate, What is the Interest?

Answer 1

Answer: $240

Explanation:

Answer 2

$240

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 (years)

First, change 6% into a decimal:

6% ->
`(6)/(100)` -> 0.06

Now, plug in the values:

`I=800(0.06)(5)`

`I=240`

The interest earned is $240.