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?

Question

Mathematics

Catalina Holder

9 April, 00:02

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)

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Estrada · Answer 1

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