Question

Tamara invested $15,000 in an account that pays 4% annual simple interest. Tamara will not make any additional deposits or withdrawals. How much interest will Tamara earn on her investment at the end of 3 years?

Answer 1

$1,800

Explanation:

We know that Tamara invested $15,000 and gets %4 of it each year, She plans to withdraw all the money by the end of 3 years.

4 percent of 15,000 is 600

So we can multiply 600 by three and add it to the 15,000

That gives us 16,800

So Tamara will make a $1,800 interest