Question

Marsha deposited $7,000 into a savings account 3 years ago. The

simple interest rate is 5%. How much money did Marsha earn in
interest?

Answer 1

$1,050 in interest

Explanation:

recall that the formula to find simple interest is as follows:

I = Prt, where

I = Interest (we are asked to find this)

P = principal amount = given as $7000

r = interest rate = 5% = 0.05

t = time = 3 years

Substituting the known values into the equation,

I = Prt

= (7000)(0.05)(3)

= $1,050 in interest