Find the simple interest earned on a deposit of $800 saved for three years at a rate of 4%
per year.
i = prt
To calculate the simple interest earned on a deposit, you can use the formula:
Simple Interest = Principal (P) × Rate (R) × Time (T)
Given that:
Principal (P) = $800
Rate (R) = 4% = 0.04
Time (T) = 3 years
Substituting these values into the formula, we get:
Simple Interest = $800 × 0.04 × 3
Calculating further:
Simple Interest = $96
Therefore, the simple interest earned on the deposit of $800 saved for three years at a rate of 4% per year is $96.
To find the simple interest earned on a deposit, you can use the formula:
Simple Interest = Principal × Rate × Time
Where:
- Principal refers to the initial deposit or amount of money.
- Rate is the annual interest rate.
- Time represents the number of years the money is saved for.
In this case, the principal is $800, the rate is 4% per year, and the time is three years.
First, convert the rate from a percentage to a decimal by dividing it by 100:
4% ÷ 100 = 0.04
Then, substitute the values into the formula:
Simple Interest = $800 × 0.04 × 3
Now, multiply:
Simple Interest = $96
Therefore, the simple interest earned on a deposit of $800 saved for three years at a rate of 4% per year is $96.