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A bank is offering 5.5% simple interest on a savings account. If you deposit $15000, how much interest will you earn in six year?

What is this question asking for?

What Kinda Interest?

User Harsha R
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1 Answer

2 votes

Answer:

a. $4,950

b. The question is asking us to calculate the simple interest that would be earned on the deposited amount for the given number of years at the given interest rate

c. Simple interest

Explanation:

a. We want to calculate the amount of interest to be earned in six years

To calculate this, we use the formula for simple interest.

Mathematically;

Simple interest I = PRT/100

Where P is the principal which is the amount deposited = $15,000

R is the rate which is 5.5%

T is the time which is 6 years

Substituting these values in the simple interest formula, we have

I = (15,000 * 5.5 * 6)/100 = $4,950

b. The question is asking us to calculate the simple interest that would be earned on the deposited amount for the given number of years at the given interest rate

c. Simple interest

User Jlstrecker
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