Chris deposited $7,200 into a savings account that earns 6.2% annual simple interest. Assuming he doesn’t make any withdrawals or deposits, how much interest should Chris expect to earn after three years?
7200 * 0.062 * 3 = ______
Euben
To calculate the interest, we can use the formula for simple interest:
I = P * r * t
Where:
I = Interest earned
P = Principal (initial deposit)
r = Interest rate per time period
t = Time period (in years)
Given:
P = $7,200
r = 6.2% = 0.062 (convert to decimal)
t = 3 years
Now substituting the values in the formula:
I = 7200 * 0.062 * 3
Calculating the expression:
I = 1335.6
Therefore, Chris should expect to earn $1,335.60 in interest after three years.
To calculate the amount of interest Chris should expect to earn, we can use the formula for simple interest:
Interest = Principal * Rate * Time
Where:
Principal refers to the amount of money deposited ($7,200 in this case),
Rate refers to the interest rate per year (6.2% or 0.062),
Time refers to the number of years the money is deposited for (3 years in this case).
By substituting the given values into the formula, we can find the answer:
Interest = $7,200 * 0.062 * 3
To simplify the calculation, we can first calculate the multiplication:
Interest = $7,200 * 0.186
Next, multiply $7,200 by 0.186:
Interest = $1,339.20
Therefore, Chris should expect to earn $1,339.20 in interest after three years.