Question

Valentina invested 6500 in a savings account with a yearly interest rate of 4% for 7 years. How much simple interest did she earn?

Answer 1

In order to find that all you do is multiply 6,500*.04*7
And the simple interest is $1,820

Answer 2

Answer: She earned $ 1820 simple interest.

Explanation:

Here, the principal amount, P = $ 6500,

Annual rate of interest, r = 4 %,

Time, t = 7 years,

Thus the simple interest earned in this amount,

`S.I.=(P* r* t)/(100)`

`=(6500* 4* 7)/(100)`

`=(182000)/(100)=1820`

Thus, she earned $ 1820 simple interest.