Sara has $3000 to invest for 2 years.
She invests the money in a bank which pays simple interest at the rate of 7.5 % per year.
Calculate how much interest she will have at the end of the 2 years.
Answers
Answered by
4
Answer:
450
Step-by-step explanation:
A = P(1 + rt)
A = final amount
P = initial principal balance
r = annual interest rate
t = time(in years)
Given,
P = 3000
t = 2 years
r = 7.5% = 7.5/100 = 0.075
A = 3000(1 + 0.075*2) = 3450
Interest = 3450 - 3000 = 450
Similar questions