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24 May, 07:30

John inherited $5,000 from his grandfather. He put it in a savings account to buy a car when he turns 16. John is 13 right now. If his savings account earns 7% over the next 3 years, how much interest will he have earned?

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Answers (1)
  1. 24 May, 10:26
    0
    Step-by-step explanation:

    $

    1050

    Explanation:

    To calculate interest the formula is:

    P

    r

    t

    =

    i

    where P = Principle, r=rate as a decimal, t + time in years.

    (assuming simple interest)

    P

    r

    t

    =

    i

    5000



    0.07



    3

    =

    i

    i

    =

    $

    1050
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