Question

Shirley deposited $1,400 into a bank account at a rate of 8% simple interest per year. How much interest did she pay in 7 years? What is the total that she needs to pay back

Answer 1

The interest did she pay in 7 years is $ 784

Total amount she needs to pay back in 7 years is $ 2184

Explanation:

Given as :

The principal deposited in account = $ 1400

The rate of simple interest applied = 8 %

The Time period = 7 years

Let interest = SI

Amount = A

From Simple Interest method

Simple interest =
`(Principal* Rate* Time)/(100)`

Or, Simple interest =
`(1400* 8* 7)/(100)`

Or, Simple interest =
`(78400)/(100)` = $ 784

∴ Simple interest = $ 784

Now, The amount she need to pay in 7 years = Amount = Principal + interest

Or, Amount = $ 1400 + $ 784 = $ 2184

Hence The interest did she pay in 7 years is $ 784

Total amount she needs to pay back in 7 years is $ 2184 Answer