Question

Casey deposited $1,450 in a bank account with an interest rate of 4% How much simple interest was earned in two years? Is the answer $116?

Answer 1

Answer:

The simple interest was earned is $116

Yes; the answer is $116

Step-by-step explanation:

- The rule of the simple interest is:

→ I = P r t, where I is the interest, P is the money invested, r is the rate

of interest in decimal, and t is the time of investment

- Casey deposited $1,450 in a bank account with an interest rate of 4%

- We need to find the amount of interest Casey earned in two years

- The interest is simple

∵ P = $1450

∵ r = 4% = 4/100 = 0.04

∵ t = 2 years

∵ The interest is simple

∴ I = Prt

- Substitute the values of P , r , t in the rule

∴ I = 1450 × 0.04 × 2 = 116

∴ The simple interest was earned is $116

* Yes; the answer is $116