Hayden invested $750 for three years at an interest rate of 0.035. How much interest did he earn in that time?

Question

wolf1728 · Answer

Total = Principal × ( 1 + Rate )^years Total = $750 * (1.035)^3 Total = $750 * 1.108717875 Total = $831.54 So interest = $831.54 = $750.00 = 81.54 Calculator and formula here: http://1728.org/compint.htm

mathmale · Answer

This solution is correct if compound interest is assumed and if interest is paid once per year.  Otherwise the formula Total = Principal × ( 1 + Rate )^years will have to be adjusted accordingly.

wolf1728 · Answer

mathmale Oh yes, I am quite familiar with calculating other types of interest: http://www.1728.org/yieldint.htm and I appreciate your comments on this.