Edwin Pritchard deposited 7,500 in a 3 - year, time - deposit account that pays simple interests at a 5.9% annual rate. What tot
1 answer:
Answer: Edwin's deposit will earn an interest of $1327.50
We determine the simple interest on an amount deposited with the following formula:
where
SI = Simple Interest
P = Principal or the amount deposited
N = Number of years for which the deposit is made
R = annual rate of interest on the principal
Substituting the values from the question in the formula above we get,
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