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

Answer 1

use the formula ....

Answer 2

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

Answer 3

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