Question

TUI UT LOUD h! Sid has a savings account with $3,000 in it that earns 8.9% simple interest per year. How much interest, to the nearest penny, will Sid earn in 3 years? Give your answer in dollars.

Answer 1

The principal vaue is P = 3000.

The rate for simple interest is r = 8.9%.

The time is t = 3.

The formula for the simple interest is,

$SI=\frac{P\cdot r\cdot t}{100}$

Determine the simple interest earned by Sid.

$\begin{gathered} SI=\frac{3000\cdot3\cdot8.9}{100} \\ =801 \end{gathered}$

So Sid earned $801 from the interest.