Question

Suppose you deposit $500 in a bank account that pays 8% annual simple

interest. Find the interest earned after 3 years.​

Answer 1

8% of 500 is 40, For the first year is 540. 8% of 540 is 43.20 dollars. 8% of 583.2 is 46.656. So the total is 630 by rounding but the actual amount is 629.956. The interest is 129.956

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Answer 2

120

Explanation:

I=prt . Where: P = Principal Amount; I = Interest Amount; r = Rate of Interest per year in decimal and time t should be in the same time units such as months or years.

I=500(.08)(3)