Question

You deposit $2200 into three separate bank accounts that each pay 3% annual interest. how much interest does each account earn after 6 years? round your answers to the nearest cent.

Answer 1

Each account earns approximately $119.22 in interest after 6 years, rounded to the nearest cent.

To calculate the interest earned by each account, we can use the formula:

Interest = Principal x Rate x Time

In this case, the principal (amount deposited) is $2200, the rate is 3% per year (or 0.03), and the time is 6 years. So the interest earned by each account is:

Interest = $2200 x 0.03 x 6 = $396

Since there are three accounts, we can divide the total interest earned by 3 to get the interest earned by each account:

$396 ÷ 3 = $132

Therefore, each account earns approximately $132 in interest after 6 years.