Question

Hannah deposited $600 into a savings account. The account pays 15% simple interest on an annual basis. If she does not add or withdraw money from her account, how much interest would she earn after 4 years?

Answer 1

Hannah would earn $360 in interest after 4 years.

Step-by-step explanation:

Simple interest is calculated using the following formula:

I = PRT

Where:

I is the interest earned

P is the principal (the amount of money deposited)

R is the interest rate (expressed as a decimal)

T is the time (in years)

In this case, P = $600, R = 15%, and T = 4 years. Plugging these values into the formula, we get:

I = (600)(0.15)(4) = $360

Therefore, Hannah would earn $360 in interest after 4 years.