Question

Find the simple interest earned in a savings account that pays 5% interest if $500 is deposited 4 years.

I don't understand the question.

Answer 1

I think you have to multiply 5% x 500. Do you have choices?

Answer 2

@Kevinz

Answer 3

Yes my choices are
A. $100
B. $1000
C. $600
D. $500
@AMQ

Answer 4

Ok, do you know the decimal form of 5%?

Answer 5

.05

Answer 6

Yes! So multiply .05 x 500.

Answer 7

That is 25

Answer 8

I = pr

Answer 9

Oh, it isn't a choice. So I don't understand it either...

Answer 10

wait

Answer 11

i do understand. 25 x 4 is 100 which is an answer.

Answer 12

That means that 25 is to total per year and if it is 4 years than it is 100

Answer 13

Thank you @AMQ

Answer 14

Oh yeah, I think that's it..

Answer 15

No problem!