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.

Question

asked Sep 13, 2019 40.7k views

2 Answers

Kizzie · Answer 1 · 2019-09-17T20:24:33+0000

Answer:

$I=\$8$

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)

$I=\$8$