Rene deposits 4000 in a savings account that earns 4 simple

Rene deposits $4,000 in a savings account that earns 4% simple interest per year. How much interest will she earn after 3 years?

A. $112

B. $350

C. $380

D. $480

Solution

Simple interest = Principal Amount x Rate x Duration

= 4000 x 4/100 x3

=480 $

Hence option D is correct