if $875 is put in the bank and each year the account earns 9% simple interest, then how much interest will be earned in four years?

Respuesta :

Answer:

The amount of interest that would be earned in four years is;

[tex]\text{ \$315}[/tex]

Explanation:

Given that $875 is put in the bank and each year the account earns 9% simple interest;

[tex]\begin{gathered} \text{ Principal P = \$875} \\ \text{rate r = 9\% = 0.09} \end{gathered}[/tex]

To calculate the interest in four years;

[tex]t=4\text{ years}[/tex]

Applying the simple interest formula;

[tex]i=P\times r\times t[/tex]

substituting the given values;

[tex]\begin{gathered} i=\text{ \$875}\times0.09\times4 \\ i=\text{ \$315} \end{gathered}[/tex]

Therefore, the amount of interest that would be earned in four years is;

[tex]\text{ \$315}[/tex]