Question

You deposit $1200 in an account. The annual interest rate is 3%. How long will it take you to earn $108 in simple interest?

Answer 1

Interest = $3,888

Explanation:

Formula:

I = prt or I = p · r · t

what it stands for:

I = amount of interest

P = principal amount ($1,200)

R = interest rate (in years)(3% into decimal which would be .03)

T = amount of time (in years)($108)

so:

I = prt

I = (1,200)(.03)(108)

I = $3,888

Interest = $3,888