Question

Manny has $650 in his savings
account. His bank pays 4.0% simple
interest per year on savings
accounts. How much interest has
Manny earned over two years?

Answer 1

Answer:

Interest Manny earns after 2 years is  $52

Step-by-step explanation:

Amount deposited = $650

Simple annual interest rate = 4%

To find: Interest after 2 years

We know that the formula to calculate the interest amount is

Simple interest (S.I.) =  $\frac{Prt}{100}$

where,

P is the initial amount deposited

r is the rate of simple interest in percentage

t is the time in years for which interest is to be calculated

Substituting the known values in the formula, we get

S.I =  $\frac{650 x 4 x 2}{100}$

   = 52

Hence the interest Manny earns after 2 years is  $52

Answer 2

Answer:

He has earned $52

Step-by-step explanation:

1. $650 x (1+4.0% x 2 years) = $52