Problema Solution
Ernie rolph has a savings account of $9401 at his credit union. If the account pays interest of 8%, how much interest will he earn in 4 years?
Answer provided by our tutors
Assuming the interest is simple we have:
P = $9401
r = 0.08 or 8% interest
t = 4 years
I = the interest
I = P*r*t
I = 9401*0.08*4
I = $3,008.32
In 4 years he will earn interest of $3,008.32.