Question

Sally deposited money into a savings account paying 4% simple interest per year.The first year,She earn $75 in interest.How much interest will she earn during the following year?

Answer 1

Answer: She will earn $900 during the following year.

Step-by-step explanation:

Since we have given that

Rate of interest = 4%

Interest = $75

Let the Principal be x

As we know the formula for "Simple Interest":

$S.I.=\frac{P\times R\times T}{100}\\\\75=\frac{P\times 4\times 1}{12\times 100}\\\\75\times 100\times 12=4\times P\\\\\frac{75\times 100\times 12}{4}=P\\\\25\times 75\times 12=P\\\\\ 22500=P$

So, Interest earned during the following year will be

$I=\frac{P\times R\times T}{100}\\\\I=\frac{22500\times 4\times 1}{100}=\ 900$

Hence, She will earn $900 during the following year.