Question

Mario deposited $6,500 in a simple interest account that pays 2.8% interest annually. If Mario leaves the money in the account for 12 years, how much interest will he earn?

Answer 1

$2,184

Explanation:

Simple interest = (Principal × Rate × Time) / 100

Principal = $6,500

Rate = 2.8%

Time = 12 years

Simple interest = (Principal × Rate × Time) / 100

= (6,500 × 2.8 × 12) / 100

= 218,400 / 100

= 2,184

Simple interest = $2,184

The simple interest on $6,500 at 2.8% for 12 years is $2,184