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Marco deposited $500 in a savings account earning 4% interest over 5 years.


What was the total amount of interest earned at the end of 5 years?


A.$40


B.$50


C.$100


D.$200

Verified Answer :

The total amount of interest earned by Marco at the end of 5 years is $100 which is letter C. Below is the solution:

Given: p = $500 deposit 
r = 4% interest 
t = 5 years term 

Formula:
i = prt (principal x rate x term)
i = $500 x .04 x 5 
i = $100

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