Question

Tina invests $17,950 in an account paying 2.59% simple interest annually. How much interest has Tina

gained after eight years?

Answer 1

`I=\$3,719.24`

Explanation:

we know that

The simple interest formula is equal to

`I=P(rt)`

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

`t=8\ years\\ P=\$17,950\\r=0.0259`

substitute in the formula above

`I=17,950(0.0259*8)`

`I=\$3,719.24`