Question

Terrence deposited $5,720 in a bank account that earned simple interest at an interest rate of 6%. How much interest was earned in four years?

Answer 1

It is given that the principle of $5720 was deposited at the rate of 6%. The interest for 4 years is to be calculated so it follows:

$p=5720,n=4,r=6$

Hence the interest is given by:

$\begin{gathered} I=\frac{\text{pnr}}{100} \\ I=\frac{5720\times4\times6}{100} \\ I=1372.8 \end{gathered}$

Hence the interest earned in four years is $1372.8.