Question

Alex deposited $450 into a savings account earning 3.75% simple interest. How much interest will she earn in 6 years?

Answer 1

$101.25

Explanation:

Simple interest= principal x simple interest rate x no. of year deposited

In this case,
principal= $450
simple interest rate= 3.75%
no. of year deposited= 6

So, we can pug in the above information to get the answer.

Simple interest = $450 x 3.75% x 6= $101.25

It is the answer! Hope it can help you :)

Reminder: 1. Don't forget to add the dollar sign($)
2. When calculating the interest rate, don't miss out the % sign or the answer will be wrong!

Answer 2

Simple Interest = I = $ 101.25

Explanation:

Simple Interest `I = (PNR) / 100`

Where Principal P, No. of years = N, Rate of Interest = R.

`P = $450, N = 6 years, R = 3.75`

`I = (450 * 6 * 3.75 ) / 100`
`I = $101.25`