Question

liu deposited $3,500 into a savings account 2 years ago. the simple interest rate is 4%. how much money did liu earn in interest? what would the account earn in 10 years?
the account earned $\square$ in interest.
the account would earn $\square$ in 10 years.

Explanation:

Step1: Recall simple interest formula

The formula for simple interest is $I = P \times r \times t$, where $I$ is the interest, $P$ is the principal amount, $r$ is the annual interest rate (in decimal), and $t$ is the time in years.
Here, $P = 3500$, $r = 4\%= 0.04$, and for the first part, $t = 2$.

Step2: Calculate interest for 2 years

Substitute the values into the formula: $I = 3500\times0.04\times2$.
First, calculate $3500\times0.04 = 140$. Then, $140\times2 = 280$.

Step3: Calculate interest for 10 years

Now, for $t = 10$, use the same formula: $I = 3500\times0.04\times10$.
First, $3500\times0.04 = 140$. Then, $140\times10 = 1400$.

Answer:

The account earned $\boldsymbol{280}$ in interest.
The account would earn $\boldsymbol{1400}$ in 10 years.