You deposit $150 in a saving account that earns simple interest at a rate of 5.5% per year.How much interest will you have earned after 4 years

Answer 1

You can solve this with a financial calculator. You would enter PV of 150, i of 5.5%, and n of 4. You then click FV to get the final value after 4 years.

Alternatively, you could use the equation $150 x (1.055)^4.

After you use either of these methods you get a value of $185.82. Subtracting $150 gives you the interest amount earned, which is $35.82.