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Naddika [18.5K]
3 years ago
7

Ernie Rolph deposits $4500 at 2% annual simple interest for 1 year. How much interest will he earn?

Mathematics
1 answer:
vaieri [72.5K]3 years ago
8 0

Answer: the amount of interest that he would earn is $90.

Step-by-step explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the amount of money deposited.

P represents the principal or amount of money deposited.

R represents interest rate on the deposit.

T represents the duration of the deposit in years.

From the information given,

P = $4500

R = 2%

T = 1 year

Therefore,

I = (4500 × 2 × 1)/100

I = $90

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