Question

Calculate the amount of interest

earned on a $500 deposit into an
account for 3 years with a 6% interest
rate.

Answer 1

The amount of interest earned is $90.

Explanation:

Firstly, we have to find out what is 6% of $500.

500 = 100%

6% of 500 =

500 × 0.06

= $30

The interest rate is $30 per year. Multiply it by 3.

30 × 3 =

$90.

The total interest earned is $90.