Question

Solve a word problem involving simple interest
Question
Robin deposited $31,000 in a bank account with an annual interest rate of 5.2%. How much interest was earned in 3
years?

Answer 1

Answer:

The interest is $4836

Step-by-step explanation:

Simple Interest SI = (PRT)/100

Principal P = $31000, rate R is 5.2% and Time T = 3 years

SI = (31000×5.2×3)/100

SI = 310×5.2×3

SI = $4836

Answer 2

The formula we would use for this is the simple interest formula, which is I = P•r•t. P is the amount, which is $31,000. R is the rate, which is 5.2%. And finally, T is the amount of time, which is 3 years. After converting 5.2% to a decimal, we multiply $31,000•0.052•3 to get $4836.00. This is the amount of interest. Hope this helps :)