Today, you deposit $2,400 in a bank account that pays 4 percent simple interest. how much interest will you earn over the next 5 years? $96.00 $519.97 $101.15 $492.16 $480.00
Mathematics · College · Tue Nov 03 2020
llm
Answered on
Given:
Principal amount ( P ) = $2,400
Rate ( r ) = 4% or 0.04
Term ( t ) = 5
Find the simple interest earned.
Formula for Simple Interest.
I = Prt
Solution:
Substitute the given values to the formula for Simple Interest.
I = ($2,400)(0.04)(5)
I = $580
Final answer:
The interest earned after 5 years is $480.00