Question

Quincy deposits $400 in a new bank account that earns 4% simple interest per year. What is the total amount in the account after 3 years?

Answer 1

The interest is $48

Explanation:

You want to calculate the interest on $400 at 4% interest per year after 3 years.

The formula we'll use for this is the simple interest formula.

P is the principal amount, $400.00.

r is the interest rate, 4% per year, or in decimal form, 4/100=0.04.

t is the time involved, 3....year(s) time periods.

So, t is 3....year time periods.

To find the simple interest, we multiply 400 × 0.04 × 3 to get $48.