Answer:
$4,204.80
Explanation:
Interest is the amount of money an initial investment earns.
Simple Interest
The question states that this account has simple interest. This means that the interest is only earned on the principal (initial investment) and not compounded. For simple interest, we need to know 3 things: the principal, the rate of interest, and the time period. So, all we need to do is plug in the values we were given.
Interest Formula
The formula to find the amount of interest earned is I = Prt. In this formula, P is the principal, r is the rate as a decimal, and t is the time. Now, we can plug our values in.
- I = 43,800 * 0.048 * 2
- I = 4,204.80
So, over the course of 2 years, the account will earn $4,204.80.