Question

Holly opened a savings account at a local bank. She deposited $1,800.00 into the account 9 years ago. If the account earns an annual simple interest rate of 6.5%, how much interest has she earned?

Answer 1

Simple interest has a formula of I = Prt, where I is Interest, P is the principle amount deposited, r is the interest rate and t is the time in years. Your P value is 1800, your r value is .065 (always convert a percent to its decimal form!), and your t is 9. Just fill in those variables to solve: I = 1800(.065)(9) to get I = 1053