spencer deposit 540 in a bank account that pays annual simple interest rate of 4.5%. How much interest will he earn after 3 years?
a.about $73.00
b.about $7,290.00
c about $126.00 <-- im not sure
d.about $200.00
How do I figure this out?
c is not right.
Interest = principle times rate times time
I = 540 * 0.045 * 3
put this in your google search engine:
540( 1.045)^3 -540=
about 73
To figure out how much interest Spencer will earn after 3 years, you can use the formula for simple interest:
Interest = Principal x Rate x Time
In this case, the principal (the amount Spencer deposited) is $540, the annual interest rate is 4.5%, and the time period is 3 years.
First, convert the interest rate to a decimal by dividing it by 100: 4.5% = 0.045.
Next, substitute the values into the formula:
Interest = $540 x 0.045 x 3
Simplifying the equation:
Interest = $145.80
So, the correct answer is not listed in the options provided. The correct answer is about $145.80.