Question

Anna invests $875 into an account and receives 4% simple interest for 24 months. How much simple interest will she earn??

Answer 1

Answer:

£70

Step-by-step explanation:

simple interest (I) is calculated as

I = $\frac{PRT}{100}$

where P is principal, R is rate of interest and T is time in years.

Note that 24 months = 2 years, thus

I = $\frac{875(4)(2)}{100}$ = $\frac{7000}{100}$ = £70

Answer 2

Answer:

$70

Step-by-step explanation:

1. I = PRT

2. Sub in what you know into the equation:

I = $875 (principal amount) x 0.04 (4%) x 2 (24 months = 2 years)

3. 875 x 0.04 x 2 = 70

4. Anna will receive $70 in simple interest