Question

Robin deposited $31,000 in a bank account with interest rate 5.2%. How much interest was earned in 3 years?

Short answer

The interest earned in 3 years will be $4836.

Step-by-step solution

Step. 1 Given Information

We have principle amount $p=\$31,000$

rate of interest $r=5.2\%=0.052$

Time in years$t=3years$

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:

$$\begin{gathered} I=prt \\ I=31,000\times 0.052\times 3 \\ I=4836 \end{gathered}$$

So, the total interest earned is $4836.