Question

Chaney deposits $1435.73 into a savings account that pays a simple annual interest rate of 1.32%. How much interest will she earn after 3 years ?

Answer 1

Answer:

Interest Chaney earns after 3 years is  $56.85

Step-by-step explanation:

Given:

Amount deposited = $1435.73

Simple annual interest rate = 1.32% = 1.32/ 100 = 0.0132

To find: Interest after 3 years

We know that the formula to calculate the interest amount is

Simple interest (S.I.) = $\frac{Prt}{100}$

where,

P is the initial amount deposited

r is the rate of simple interest in percentage

t is the time in years for which interest is to be calculated

Substituting the known values in the formula, we get

S.I = $\frac{1435.73 x 1.32 x 3}{100}$

    = 56.85

Hence the interest Chaney earns after 3 years is  $56.85