Steve deposits $800 in the bank and earns 5% interest each year. How much interest will he have earned in 4 years?

$160

$140

$60

$40

Question

Shea Stephens

Mathematics

25 September, 10:24

Steve deposits $800 in the bank and earns 5% interest each year. How much interest will he have earned in 4 years?

$160

$140

$60

$40

+4

Answers (1)

Know the Answer?

Livia · Answer 1

Simple interest means he takes out the interest each year so that it doesn't compound.

$800 x. 05 = $40 a year interest.

$40 x 4 yrs = $160 in interest.

Steve deposits $800 in the bank and earns 5% interest each year. How much interest will he have earned in 4 years?$160$140$60$40

Steve deposits $800 in the bank and earns 5% interest each year. How much interest will he have earned in 4 years?

$160

$140

$60

$40