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Lorraine invested $5,500 in a savings account with a yearly interest rate of 6% for 9 years. How much simple interest did she earn?

A$330
B$2,970
C$297
D$3,300

Verified Answer :

Hey !

the answer is B) $2,970  , because :

(5500*6\100) * 9  = 2970$

MissPhiladelphia

The formula for simple interest is

F = P(1 + ni)

where F is the future worth of the money
P is the present worth
n is the numbe of years
i is the interest rate

substituting values, we get a future worth of $8470

The earnings is therefore $8470 - $5500 = $2970

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