Question

Dan deposits $400 into an account that pays simple interest at a rate of 4% per year. How much interest will he be paid in the first 3 years?

Answer 1

Here is the answer. - $48

Here is the total bank savings. - $448

Here is the explanation. -

First, we need to find 4% of 400. We know that 10% is 40. So, 40/10...4.

So, now that we know 1% is 4, we just multiply 4 by how much percent we need: 4 :

So, 4% is $16

To get the total, we multiply 4% by 3 because it is 4% every year.

$48 is our answer.