Question

An account earns simple interest. $300 at 4% for 3 years, what is the interest earned

Answer 1

$36

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 4% into a decimal:

4% ->
`(4)/(100)` -> 0.04

Now, plug the values into the equation:

`I=300(0.04)(3)`

`I=36`

The interest earned is $36