Question

How much money does Ed earn in interest after 16 years if he deposits $600 dollars in an account that pays 2.75% annual simple interest?

Answer 1

Gɪᴠᴇɴ :-

• Sum Deposit = $600 .
• Rate = 2.75% .
• Time = 16 Years.

Tᴏ Fɪɴᴅ :-

• How much money does Ed earn in interest ?

Fᴏʀᴍᴜʟᴀ ᴜsᴇᴅ :-

• Simple Interest = (Principal x Rate x Time)/100

Sᴏʟᴜᴛɪᴏɴ :-

From Given Data we have :-

➺ Principal = $600

➺ Rate = 2.75%

➺ Time = 16 Years.

➺ SI = ( P * R * T ) / 100

➺ SI = (600 * 2.75 * 16) / 100

➺ SI = 6 * 2.75 * 16

➺ SI = 6 * 44

➺ SI = $264 (Ans.)

Hence, Ed earn $264 in interest.