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

The formula for simple interest is
I = prt
I = (6500)(.04)(7)
So, after multiplying these number we get the answer of
I = $1820

Answer 2

Interest would be $1,820

Explanation:

Valentina invested in a savings account = $6,500

Yearly interest rate = 4% or 0.04

Time = 7 years

To solve simple interest we use formula :

I = prt

I = Interest

P = Principal amount

r = rate of interest

t = time

I = (6500)(0.04)(7) = $1,820

Valentina earned $1,820 simple interest.