Question

Marsha deposited $8500 into a savings account 2 years ago. The simple interest rate is 5% how much did Marsha earn in interest

Answer 1

Answer:

Marsha earned interest = $850

Step-by-step explanation:

Amount deposited = $8500

Time = 2 years

Interest rate = 5% = 0.05

We need to find how much did Marsha earn in interest

The formula use is: $I=P\times r \times t$

Where I is interest earned, P is amount deposited, r is interest rate and t is time.

Putting values and finding interest.

$I=P\times r \times t\\I=8500\times 2\times 0.05\\I=850$

So, Marsha earned interest = $850