SOLUTION: Today, you deposit $3,400 in a bank account that pays 5 percent simple interest. How much interest will you earn over the next 5 years?

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Question 1129445: Today, you deposit $3,400 in a bank account that pays 5 percent simple interest. How much interest will you earn over the next 5 years?
Found 2 solutions by Boreal, Alan3354:
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
P=Po(1+r)^n
P=3400(1.05)^5
P=$4339.36
Interest earned is $939.36

Answer by Alan3354(69443) About Me  (Show Source):
You can put this solution on YOUR website!
Today, you deposit $3,400 in a bank account that pays 5 percent simple interest. How much interest will you earn over the next 5 years?
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For simple interest, it's
$3400*0.05*5 = $850