Question

Edward deposited $6,500 into a savings account 4 years ago. The simple interest rate is 5%. How
much money did Edward earn in interest?
Substitute the values into the equation.
Interest=$• • years
Edward earned $ in interest.

Answer 1

Answer:

Edward earned $1300 interest in 4 years.

Step-by-step explanation:

Principal Amount = Initial Investment = $6500

Time t = 4 years

Interest rate r = 5% = 0.05 (it is taken in decimal i.e 5/100 = 0.05)

We need to find interest.

The formula used is: $Interest= Principal\times r \times t$

Putting values and finding Interest

$Interest= Principal\times r \times t\\Interest=6500\times 0.05 \times 4\\Interest= 1300$

So, the interest = $1300 in 4 years.

Edward earned $1300 interest in 4 years.