Question

Find the amount of interest earned in an account with an initial deposit of $800 for 15 years at an interest rate of 3%

Answer 1

$360

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`

P = initial balance

r = annual interest rate

t = time

First, lets change 3% into a decimal:

3% ->
`(3)/(100)` -> 0.03

Now, plug in the values:

`I=800(0.03)(15)`

`I=360`

The interest earned will be $360.