Question

NEED HELP ASAP: Abbi invested $1,000 in a certificate of deposit with a simple interest rate of 4%. Find the interest earned in 8 years. Then find the total of principal plus interest.

Answer 1

The 8 year Intrest is $320

Answer 2

Therefore, Abby earned $320 in interest.

Abby earned a total amount of $1,320.

Explanation:

We have been given that Abbi invested $1,000 in a certificate of deposit with a simple interest rate of 4%.

To find the amount of interest, we will use simple interest formula.

`I=Prt`, where,

I = Amount of interest,

P = Principal amount,

r = Annual interest rate in decimal form,

t = Time in years.

Let us convert our given interest rate in decimal form.

`4\%=(4)/(100)=0.04`

`I=\$1,000*0.04*8`

`I=\$1,000*0.32`

`I=\$320`

Therefore, Abby earned $320 in interest.

To find the total of principal plus interest, we will add $320 to $1000 as:

`\text{Total amount}=\$1,000+\$320`

`\text{Total amount}=\$1,320`

Therefore, Abby earned a total amount of $1,320.