Question

coach cliffman made a deposit of $1,800 into an account that earns 2% annual simple interest. find the amount of interest that coach cliffman earned after 3 years

Answer 1

$108

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

First, change 2% into its decimal form:

2% ->
`(2)/(100)` -> 0.02

Next, plug in the values into the equation:

`I=1,800(.02)(3)`

`I=108`

Coach Cliffman earned $108 of interest after 3 years.