Question

Juan deposited $4,000 into a savings account that earns4.5% simple interest for 6 years.

Answer 1

We have the following equation to find the simple interest given a rate r at a time t:

$I=C\cdot r\cdot t$

where C represents the initial amount.

In this case, we have the following:

$\begin{gathered} C=4000 \\ t=4.5\%=0.045 \\ t=6 \\ \Rightarrow I=4000(0.045)(6)=1080 \\ I=1080 \end{gathered}$

therefore, the interest after 6 years will be $1080