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Brut [27]
3 years ago
6

What is the amount of interest earned after two years on a $100 deposit paying 4 percent simple interest annually?

Business
1 answer:
klasskru [66]3 years ago
7 0

Answer:

$8

Explanation:

The yearly amount of interest earned on a $100 deposit at 4 percent rate is:

Ai=$100*0.04\\Ai=\$4

Since simple interest investments yield a constant interest each year, the amount earned after two years is:

I=2*\$4\\I=\$8

The total amount earned is $8.

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