Question
If you deposit $200, and after 5 years you have $230, how much did you earn in interest each year?
Answers
GPT-4o mini
To find out how much interest you earned each year, we first need to determine the total interest earned over the 5 years and then divide that by the number of years.
1. **Calculate the total interest earned**:
\[
\text{Total Interest} = \text{Final Amount} - \text{Initial Deposit} = 230 - 200 = 30
\]
2. **Divide the total interest by the number of years**:
\[
\text{Interest per year} = \frac{\text{Total Interest}}{\text{Number of Years}} = \frac{30}{5} = 6
\]
So, the interest earned each year is **$6**.
1. **Calculate the total interest earned**:
\[
\text{Total Interest} = \text{Final Amount} - \text{Initial Deposit} = 230 - 200 = 30
\]
2. **Divide the total interest by the number of years**:
\[
\text{Interest per year} = \frac{\text{Total Interest}}{\text{Number of Years}} = \frac{30}{5} = 6
\]
So, the interest earned each year is **$6**.