Question

PLEASE HELP I really need it!!! Steve deposited 2,500$ to the bank. The account has an annual simple interest rate of 4%. After 3 years how much simple interest will Steve Earn? Please Help ASAP

Answer 1

$300

Explanation:

You want to calculate the interest on $2500 at 4% interest per year after 3 year(s).

The formula we'll use for this is the simple interest formula, or:

Where:

P is the principal amount, $2500.00.

r is the interest rate, 4% per year, or in decimal form, 4/100=0.04.

t is the time involved, 3....year(s) time periods.

So, t is 3....year time periods.

To find the simple interest, we multiply 2500 × 0.04 × 3 to get that:

The interest is: $300.00

Usually now, the interest is added onto the principal to figure some new amount after 3 year(s),

or 2500.00 + 300.00 = 2800.00