Question

Principal: $940
Annual rate:3.5%
Time:30 months
Find the amount of simple interest earned

Answer 1

I believe the amount of interest earned would be $82.25. I'm not completely positive but I think it's right. For figuring out how much additional money the interest adds each year you would multiply 940 and .035 which is 32.90 to figure out how much the interest was for one year. Since 30 months is 2 1/2 years and the interest rate is annual then it would be the amount of interest per year- 32.90 times 2.5 which is 82.25