Question

How much interest will I earn the first year? (3.2% of $500)

Answer 1

`~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$500\\ r=rate\to 3.2\%\to (3.2)/(100)\dotfill &0.032\\ t=years\dotfill &1 \end{cases} \\\\\\ I = (500)(0.032)(1) \implies I = 16`