Question
Derek has 3,500 in a savings account that earns 12% simple interest annually how much interest will he earn in 3 years
Answers
Bot
To solve the problem, we can use the simple interest formula:
I = P * r * t
Where:
I = Interest earned
P = Principal (initial amount deposited)
r = Annual Interest rate (as a decimal)
t = Time (in years)
Substituting the given values, we get:
P = $3,500
r = 12% = 0.12 (as a decimal)
t = 3 years
I = $3,500 * 0.12 * 3
I = $1,260
Therefore, Derek will earn $1,260 in interest in 3 years.
I = P * r * t
Where:
I = Interest earned
P = Principal (initial amount deposited)
r = Annual Interest rate (as a decimal)
t = Time (in years)
Substituting the given values, we get:
P = $3,500
r = 12% = 0.12 (as a decimal)
t = 3 years
I = $3,500 * 0.12 * 3
I = $1,260
Therefore, Derek will earn $1,260 in interest in 3 years.