Question

SCUIE. UUII PL

289 16 (1 Co
2.7.3
If $110 is invested for one year at 13.2% simple interest, how much interest is earned?

Answer 1

$14.52

Explanation:

We need to use the formula for simple interest to solve this problem. The formula is shown below:

`i=Prt`

Where

i is the simple interest earned

P is the principal (initial) amount

r is the rate of interest

t is the time in years

In this problem, we are given:

P = 110

r = 13.2%

converted to decimal, 13.2/100 = 0.132

t = 1 (1 year)

Now we substitute and find interest earned:

`i=Prt\\i=(110)(0.132)(1)\\i=14.52`

Thus, the simple interest earned on $110 in 1 year is $14.52