If a bank offers a savings account that pays simple interest rate of 4% and you deposit $475.00 into this account, how much interest will you have earned after 3 years?
a. $5,700.00
b. $57.00
c. $28.50
d. $3,958.33

Question

If a bank offers a savings account that pays simple interest rate of 4% and you deposit $475.00 into this account, how much interest will you have earned after 3 years?
a. $5,700.00 
b. $57.00
c. $28.50 
d. $3,958.33

amistre64 · Answer

use the formula ....

amistre64 · Answer

4% of 475
+ 4% of 475
+ 4% of 475
-----------
3 (4% of 475)

amistre64 · Answer

or, 1% is about $5,  4% is about $20,  3 times is $60,  so a little less