Question

You deposit $880 in a savings account paying 4% simple interest.

How much interest will you earn in 5 years?

Answer 1

$176

Explanation:

Simple interest = P ( initial money )*r (rate ) *t ( time )

P = $880

r = 4% = 0.04

t = 5 years

Simple interest = 880 * 0.04 * 5 = $ 176

Interest you earn in 5 years is $176.

Answer 2

interest earned is $176

Explanation:

Interest = Principal x Rate x Time

I = 880 x .04 x 5

I = 176