Question

Liu deposited $3500 into a savings account 2 years ago. The simple interest rate is 4%. How much money did Lui earn in interest? What would the account earn in 10 years?

Answer 1

Answer:

• 2 years: $280
• 10 years: $1400

Step-by-step explanation:

The formula for simple interest is ...

  i = Prt

where P is the principal, r is the annual rate, and t is the number of years.

a) Filling in the given values, we find the amount of interest to be ...

  i = $3500·0.04·2 = $280 . . . . interest earned in 2 years

__

b) In 10 years, the account will earn ...

  i = $3500·0.04·10 = $1400 . . . . earnings in 10 years

Answer 2

Answer:

5645

Step-by-step explanation: