Evelyn opened a savings account that pays 7.5% simple interest. She deposited $450.how much interest will evelyn earn after 3 yeas
How frequently is the interest compounded? If only once a year, then the account value after 3 years is
450*(1.075)^3 = $ 559.03
If it's simple interest, it just grows by 450*.075 = $33.75 per year.
To calculate the interest that Evelyn will earn after 3 years, we can use the formula for simple interest:
Interest = Principal x Rate x Time
Where:
- Principal is the initial deposit amount
- Rate is the interest rate per year
- Time is the number of years
In this case, Evelyn deposited $450 and the interest rate is 7.5% (or 0.075), and the time period is 3 years.
Let's calculate the interest:
Interest = $450 x 0.075 x 3
Interest = $33.75
Therefore, Evelyn will earn $33.75 in interest after 3 years.
To calculate the amount of interest Evelyn will earn after 3 years, you can use the formula:
Interest = Principal * Rate * Time
Where:
Principal = $450 (the initial deposit)
Rate = 7.5% (expressed as a decimal, so 7.5% becomes 0.075)
Time = 3 years
Now let's substitute the values into the formula:
Interest = $450 * 0.075 * 3
To get the answer, simply multiply the values together:
Interest = $450 * 0.075 * 3 = $101.25
Therefore, Evelyn will earn $101.25 in interest after 3 years.