Question

Holly opened a savings account at a local bank. She deposited $3,100.00 into the account 9 years ago. If the account earns an

annual simple interest rate of 7.1%, how much interest has she earned?

Answer 1

The answer is 1980.9

Explanation:

Formula is PxRxT

P=Princlple(Amount of money desposited)

R=Rate the rate in deciaml form. Example: 7.1=0.071

T=Time

SI=3100x0.071x9=1980.9

P R T

Answer 2

She has earned $1980.90 in interest.

Explanation:

Since we know that she deposited $3100 9 years ago, we know we have to find the amount of interest she gets per year times 9. So $3100*0.071 = $220.10 and then $220.1*9 = $1980.90. Therefore, she has earned $1980.90 in interest.