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22 September, 01:44

Jonathan has $44,200 in a saving account. The interest rate is 7% per year and is not compounded. How much interest will he earn in 3 years?

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  1. 22 September, 02:29
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    The interest that he gains after 3 years is $9282.

    Step-by-step explanation:

    Step 1: Given details are Principal amount (P) in bank = $44200, Interest rate, R = 7%, Time, T = 3 years. Since interest is not compounded, we have to calculate simple interest. Step 2: Formula for Simple Interest (SI) = PRT/100

    ⇒ SI = (44200 * 7 * 3) / 100

    ⇒ SI = 442 * 7 * 3

    ⇒ SI = $9282
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