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18 September, 19:40

Steve deposits $800 in the bank and earns 5% interest each year. How much interest will he have earned in 4 years?

$160

$140

$60

$40

+5
Answers (1)
  1. 18 September, 20:28
    0
    Simple interest means he takes out the interest each year so that it doesn't compound.

    $800 x. 05 = $40 a year interest.

    $40 x 4 yrs = $160 in interest.
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