SOLUTION: You deposit $840 in a savings account that earns a simple in n tree interest rate of 4.5% per year. You want to keep the money in the account for 4 years. How much interest will yo

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Question 1145642: You deposit $840 in a savings account that earns a simple in n tree interest rate of 4.5% per year. You want to keep the money in the account for 4 years. How much interest will you earn?
Answer by ikleyn(52776) About Me  (Show Source):
You can put this solution on YOUR website!
.
For the simple interest, the formula is


    I = P*r*t,


where I is interest value, P is the initial amount (deposit); r is the annual rate and "t" is time (in years).


To find "I" in your case, substitute P = 840 dollars;  r = 0.045 (annual percentage rate as decimal, and t = 4 years.


Then calculate  I = 840*0.045*4.


You may use your calculator/computer.

Happy calculations (!)