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Jane received $875 from her graduation party. She put the money in a bank with a 4% simple interest rate. How much interest will she have earned after 7 years?

 Mar 24, 2020

Best Answer 

 #2
avatar+23710 
+2

The INTEREST on that amount for 7 years would just be       $ 875 * t * rate     where rate is in decimal form (.04)

$ 875 * 7 * .04 = $  ..........

 Mar 24, 2020
 #1
avatar+111330 
+1

Simple interest  formula  for total amount earned :

 

Total amount =  Principal  (  1 +  rate * time)

 

So

 

Total amount =  875  ( 1  + .04 * 7)    =  875  ( 1 + .28)   =  875 *1.28)  =   $1120

 

 

cool cool cool

 Mar 24, 2020
 #2
avatar+23710 
+2
Best Answer

The INTEREST on that amount for 7 years would just be       $ 875 * t * rate     where rate is in decimal form (.04)

$ 875 * 7 * .04 = $  ..........

ElectricPavlov Mar 24, 2020
 #3
avatar+111330 
0

Thanks, EP......I didn't read this closely enough  !!!

 

 

cool cool cool

CPhill  Mar 24, 2020

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