Question

Terrence deposited $5,720 in a bank account with interest rate 6%. How much interest was earned in 4 years?

Short answer

The interest earned in 4 years will be $1372.8.

Step-by-step solution

Step. 1 Given Information

We have principle amount$p=\$5,720$

Rate of interest $r=6\%=0.06$

Time$t=4years$

Step. 2 Formula and calculation for simple interest 

As we know the formula to find the simple interest is:

$$\begin{gathered} I=prt, \\ wherepisindollars,ristherateandtisthetimeinyears. \end{gathered}$$

So, putting the values in the formula we get the total interest earned which is as follows:

$$\begin{gathered} I=prt \\ I=5720\times 0.06\times 4 \\ I=\$1372.8 \end{gathered}$$

So, the total interest earned is $1372.8