Question

Bonnie deposits $180 in a savings account that earns simple interest at an annual rate of 3%. How much interest does her account earn after 10 years?

Answer 1

Answer: $54.00

Explanation: Three percent of $180.00 is $5.40. So Bonnie receives $5.40 annually. In ten years, she will have $54 (multiply 5.40 by 10).