Question

José put $1,500 into a savings account. He earns 3% interest every year. How much simple interest will he earn at the end of 3 years?

Answer 1

$139.09

Explanation:

The first year he would earn $45

The second years he would earn $46.35

The third year earning $47.74

In the three years he would earn $139.09

Answer 2

139.0905

Explanation:

1,500 x 103% x 103% x 103% = 1639.0905

1639.0905 - 1500 = 139.0905