Suppose you deposit $150 in a savings account that earns simple interest at a rate of 5.5% per year. How much interest will you earn after 4 years?

Question

Adams

Mathematics

18 June, 16:12

Suppose you deposit $150 in a savings account that earns simple interest at a rate of 5.5% per year. How much interest will you earn after 4 years?

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Answers (1)

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Phoenix Gallegos · Answer 1

With simple interest, you only earn 5.5% of the original $150 each year.

So after 4 years, your money will earn (5.5% x 4) = 22% of the original $150.

22% of $150

= 0.22 x $150

= $33.