John deposited $3300 in a savings account at an annual interest rate of 2%. If John

Question

does not deposit or withdraw any money, what is the amount of interest John will
earn in 25 years?
A $1200
B $1150
C $1650
D $4950

Answer 1

We can solve this question using the simple interest formula:

Interest = Principal x Rate x Time

Here, the principal (P) is $3300, the annual interest rate (R) is 2%, and the time (T) is 25 years. Substituting these values, we get:

Interest = 3300 x 0.02 x 25
Interest = $1650

Therefore, the amount of interest John will earn in 25 years is $1650, which is option C.