Sarah deposits $4,000 at the bank at an rate of 4.5% per year. How much interest will she earn at the end of 3 years?

Sarah will earn $540 interest at the end of three years.

How to:

- In this problem, we must find the simple interest in order to solve. First let's write the formula for simple interest.

Simple Interests = Principal × Interest Rates × Time

- Now, we will determine what is the value of the each.

The 'principal' is $4,000 [amount of money deposited].

The 'interest rates' is 4.5% [percent of the principal earned].

The 'time' is 3 [length of time].

- Finally, we will plug in the values and solve.

Simple Interests = $4,000 × 4.5% × 3

Simple Interests = $540.00

So... Sarah will earn $540 interest at the end of 3 years.

And that is our answer!

Hope this helps!

squares, rhombus, rectangles

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