Question

Ms. Caswell deposits $450 into an account earning 8% simple interest per year. How

much simple interest is earned after 4 years?

Answer 1

$144

Explanation:

Use the simple interest formula, I = prt, where I is the interest money created, p is the starting amount, r is the interest rate as a decimal, and t is the amount of time.

Plug in the original amount, interest amount, and amount of time:

I = prt

I = 450(0.08)(4)

I = 144

So, $144 in simple interest is made in 4 years