Question

485 is deposited into a savings account that earns 3% simple interest for 4 years. How much intrest do you earn and the total money by the end of 4 years

Answer 1

Interest earned is $58.2

Amount in account is $544.2

Explanation:

To calculate the simple interest, we make use of the simple interest formula.

Mathematically;

I= PRT/10”

whereI is the interest

P is the amount deposited which is the principal and is 485

R is the rate which is 3% or simply 3/100 = 0.03

T is time which is 4 years

Plugging the values, we have

I = (485 * 3 * 4)/100 = $58.2

The amount of money in the account will be the interest plus the principal.

This is $58.2 + 485 = $543.2