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5 October, 12:05

If you deposit $3000 in a savings account that earns simple interest at the rate of 2.5% per year, how much interest will you have earned after 4 years?

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  1. 5 October, 12:22
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    Firstly we need to find out what's 2.5% from $3000:

    3000 * 2.5% =

    = 3000 * 2.5/100 =

    = 3000 * 25/1000 =

    = 3 * 25 =

    = 75 [dollars]

    It means you will earn $75 dollars of interest annualy. After 4 years you will earn:

    4 * $75 = $300
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