James deposited $8000 into a savings account that earns simple interest. If his interest rate is 5% per year and he leaves it there for 4 years, how much interest will he earn? Work needs to be shown.

a) $1,600

b) $160,000

c) $8,009

d) $16,000

Question

James deposited $8000 into a savings account that earns simple interest. If his interest rate is 5% per year and he leaves it there for 4 years, how much interest will he earn? Work needs to be shown.

a) $1,600

b) $160,000

c) $8,009

d) $16,000

whpalmer4 · Answer

With simple interest, the amount of interest paid is the percentage rate (as a decimal) * the principal * the number of periods

tkhunny · Answer

I = Prt

Seriously, use that.

whpalmer4 · Answer

Here the principal = $8000, the number of periods = 4, and the interest rate is 5% = 0.05

anonymous · Answer

I honestly dont know how to do it, the education system and stuff.

whpalmer4 · Answer

Did you save your receipt? :-)

Okay, I = interest paid.  P = principal.  r = interest rate.  t = number of periods.  Match those words up with the numbers I gave above, and do the multiplication.  Tell me the result, and I'll tell you if you got it right.

anonymous · Answer

I might be wrong but is it A?
I multplied and yeahh

whpalmer4 · Answer

A is correct!