Question

Janet deposited $1,250 in a savings account that earns 4.3% simple interest. How much interest has Janet earned by the end of the first year?

Answer 1

Since the account earns simple interest, and you need to know the interest earned in one year, all you need to do is multiply the interest rate by the amount deposited.

You can use this formula:

\(I = PRT\)

where I = interest
P = principal amount (amount deposited)
R = interest rate
T = time

In your case, P = 1250, r = 4.3% = 0.043, and T = 1

Answer 2

Thanks

Answer 3

wlcm