Question

If the principal is $612 and the rate of interest is 2.85%, what is the amount of interest after eight years?

Answer 1

$766.28

Explanation:

The equation for interest rate is as follows:

`A = P(1 + r)^t\\`

A = The total amount

P = Initial amount

R = The interest rate

T = Time

Let's plug everything into the equation that is given in the question:

The initial amount = 612

Interest rate = 2.85

Time = 8 years

`A = 612(1+.0285)^8`

***Just a reminder we move the decimal over twice when working with percents***

Now, lets solve for the total amount:

`A = 612(1.0285)^8\\A = 612(1.252086602)\\A = 766.28`

Therefore, after 8 years the principal is $766.28.

I hope this helps!!

If you have any questions feel free to ask!

- Kay :)