Question

Natalie invested $15,000 in an account that pays 4% annual simple interest. Natalie will not make any additional deposits or withdrawals. How much interest will Natalie earn on her investment at the end of 3 years?AnswerF$1,800G$600H$450J$1,873

Answer 1

The amount of interest that Natalie will earn on her investment is $1,800.

EXPLANATION

Given:

Principal(P) = $15 000

Rate = 4

Time = 3

Using the simple interest formula below:

$S\mathrm{}I=\frac{P\times R\times T}{100}$

Substitute the values and evaluate.

$S\mathrm{}I=\frac{15000\times4\times3}{100}$$=\text{ \ 1,800}$

Therefore, the amount of interest that Natalie will earn on her investment is $1,800.