Answer:
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!
