Question

John inherited $5,000 from his grandfather. He put it in a savings account to buy a car when he turns 16. John is 13 right now. If his savings account earns 7% over the next 3 years, how much interest will he have earned?

Answer 1

Answer:

Step-by-step explanation:

$

1050

Explanation:

To calculate interest the formula is :  

P

r

t

=

i

where P= Principle, r=rate as a decimal, t+ time in years.

(assuming simple interest)

P

r

t

=

i

5000

⋅

0.07

⋅

3

=

i

i

=

$

1050

Answer 2

Answer:

1050

Step-by-step explanation: