Question

coach cliffman made a deposit of $1,800 into an account that earns 2% annual simple interest. find the amount of interest that coach cliffman earned after 3 years

Answer 1

Answer:

$108

Step-by-step explanation:

You are going to want to use the simple interest formula for this. The one below is modified for solving the interest earned.

$I=Prt$

I = interest amount

P = principal amount

r = interest rate (decimal form)

t = time

First, change 2% into its decimal form:

2% -> $\frac{2}{100}$ -> 0.02

Next, plug in the values into the equation:

$I=1,800(.02)(3)$

$I=108$

Coach Cliffman earned $108 of interest after 3 years.