Question

How much interest is earned on $635 at 8.15% for six years?

Answer 1

Answer: The interest earned is $31,051.05.

Explanation:

The formula for simple interest is P x R x T.

The P stands for the Principal amount( the beginning balance);

The R stands for Interest Rate (usually per year, expressed as a decimal);

and finally, the T stands for Number of time periods (generally one-year time periods).

So, we are going to multiply the principal, $635, by the rate, 8.15%, and the time, 6, which turns out to be $31,051.05.