Question

Mr. Espinoza opened a saving account with a deposit of $800. The account earns 3% simple interest. What is the total amount of interest he will have at the end of 5 years?

Answer 1

$120

Explanation:

Simple interest = principal (P) × rate (R) × time (T) / 100

Principal = $800

Rate = 3%

Time = 5 years

Simple interest = principal (P) × rate (R) × time (T) / 100

= (800 × 3 × 5) / 100

= 12,000 / 100

= 120

Simple interest = $120

The total amount of interest Mr. Espinoza will have at the end of 5 years is $120