Question

Round answers to the nearest cent. 1. John is going to invest $100 in an account for 3 years. If the account earns 6% simple interest, how much interest can he expect to earn?

Answer 1

Data:

Principal: $100

Time: 3 years

Simple interest: 6%

You can find the interest John earn whit the next formula for simple interest:

$I=P\cdot r\cdot t$

P is principal, r is the rate of interest in decimals and t is time.

$\begin{gathered} I=100\cdot\frac{6}{100}\cdot3 \\ \\ I=18 \end{gathered}$Then, John will earn $18 after 3 years