Question

Richard deposited $5500 for 6 years on 2.40% interest. How much simple interest will he earn

Answer 1

Formula: Principal x Rate x Time

1) $5500 x 2.40 x 6 = $79,200
2) $47,300 x 0.03 x 4 = $5,676

Note: How I got 0.03 for problem 2 is because of converting percentages into decimal form.