Question

Find the amount of simple interest earned in one year on an account that has an interest rate of 3.2% and a principal of $250.

Answer 1

Answer:8

Explanation:

P=250

R=3.2%/100=0.02

250x0.032=8

Answer 2

`I=\$8`

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=1\ year\\ P=\$250\\r=3.2\%=3.2/100=0.032`

substitute in the formula above

`I=250(0.032*1)`

`I=\$8`