Question

marco deposited $500 in a savings account earning 4% simple intrest over 5 years what was the total amount of intrest earned at the end of 5 years a. 40, b. 50, c. 100, d.200

Answer 1

The formula in computing the simple interest of a savings account is:

I = Prt

Where I = interest earned

             P = principal amount deposited

             r = rate

             t = time in years

You are asked to find the total amount of interest earned at the end of 5 years. Substituting the amounts to the formula:

I = $500 (4%) (5)

I = $100

Therefore, the total amount of interest earned at the end of 5 years is $100.