Question

$2,380 is deposited into an account that earns 3% simple interest for 4 years. How much interest is earned?

Answer 1

Remember that we can calculate the sinmple interest earned in an investment or saving using the formula:

$I=\frac{P\cdot R\cdot T}{100}$

Where:

P is the money invested/saved

R is the rate of interest

T is the time of the investment/deposit in years

Using this formula and the data given, we get:

$I=\frac{2380\cdot3\cdot4}{100}\Rightarrow I=285.60$

Therefore, the interest earned is $285.60