Question

5. Mr. Rodriguez invests $2,000 in a savings plan. The savings account pays an annual interest rate of 5.75% on the amount he put in at the end of each year. A. How much will Mr. Rodriguez earn if he leaves his money in the savings plan for 10 years?

Answer 1

Answer: $1150

Explanation:

Simple interest is calculated as:

= Principal × Rate × Time

where,

Principal = $2000

Rate = 5.75%

Time = 10

Interest = 2000 × 5.75% × 10

= 2000 × 0.0575 × 10

= 1150

The amount earned will be $1150.