Answer: the amount of interest after 3 years is $60
Step-by-step explanation:
The formula for determining simple interest is expressed as
I = PRT/100
Where
I represents interest paid on the amount of money deposited.
P represents the principal or amount of money deposited.
R represents interest rate on the deposit.
T represents the duration of the deposit in years.
From the information given,
P = $500
R = 4%
T = 3 years
Therefore,
I = (500 × 4 × 3)/100
I = $60
Answer:
$560.00
Simple Interest Formula: A= P(1+rt)
A= final amount
P = initial principal balance
r = annual interest rate
t = time (in years)
