Question

Lucy deposits $200 into an account that pays simple interest at a rate of 3% per year. How much Interest will she be paid in the first 3 years?

Answer 1

Answer:

$16.48

Step-by-step explanation:

Split this up into the four years.

For the first year, multiply 200 x .02 to get 4

Add 4 onto your total. ($204.00)

For the second year multiply 204 x .02 to get 4.08

Add 4.08 onto your total. ($208.08)

For the third year multiply 208.08 x .02 to get 4.1616 but round to 4.16

Add 4.16 onto your total ($212.24)

For the fourth year multiply 212.24 x .02 to get 4.2448 but round to 4.24

Add 4.24 onto your total (216.48)

Now subtract 200 from your total

216.48-200 = 16.48

She will be payed $16.48 in interest.