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Calculate the simple interest earned on an investment of $9710 at a semiannual rate of 3.6% for 4 years. Write your answer to the nearest cent.​

User Overblade
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Answer:

Explanation:

To calculate the simple interest earned on an investment of $9710 at a semiannual rate of 3.6% for 4 years, we need to use the formula:

I = Prt

where I is the interest, P is the principal (initial investment), r is the interest rate (as a decimal), and t is the time (in years).

In this case, the principal is $9710, the interest rate is 3.6% per year, or 0.036/2 = 0.018 per 6-month period (since the interest is compounded semiannually), and the time is 4 years, or 8 periods of 6 months each.

Plugging in these values, we get:

I = $9710 x 0.018 x 8 = $1392.24

Therefore, the simple interest earned on the investment is $1392.24. Rounding to the nearest cent, the answer is $1392.24.

User Vikash Dahiya
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