Question

Mark currently has a balance of $973.70 in an account he has held for 17 years. He opened the account with an initial deposit of $700. What is the simple interest on the account? (3 points)

Answer 1

Answer:

Simple interest= $273.7

Explanation:

Simple interest is the interest on earned on the principal amount invested only. Kindly note that under this system, only the principal amount invested would earn interest over the course of the investment period

Simple interest is calculated as follows:

Simple interest = Principal × Rate × Time

or

Simple interest = Future sum - Principal amount invested

DATA

Future sum- $973.70

Principal amount invested-700

Simple interest = 973.70 - 700=273.7

Simple interest= $273.7