Question

$745 is deposited into an account that earns 4% simple interest for 8 years.

How much interest is earned in 1 year?

Answer 1

9514 1404 393

Answer:

$29.80

Explanation:

The interest earned in 1 year is ...

I = Prt

I = $745·0.04·1 = $29.80

$29.80 interest is earned in 1 year.