Question

For the following compound interest problem, how much interest would you earn if you put $600 in the bank at 5.5% for 2.25 year.

Answer 1

$74.25

Explanation:

First, converting R percent to r a decimal

r = R/100 = 5.5%/100 = 0.055 per year,

then, solving our equation

I = 600 × 0.055 × 2.25 = 74.25

I = $ 74.25

The simple interest accumulated

on a principal of $ 600.00

at a rate of 5.5% per year

for 2.25 years is $ 74.25.