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Eric invested $10,000 in a 6-years certificate of deposit that pays 8% simple interest.

a) How much will he receive after the 6 years?

b) What is the total interest that he will earn?

Please help !!!!! My test is timed

1 Answer

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Explanation:

a) To calculate the amount that Eric will receive after the 6 years, we need to use the formula for simple interest:

I = P * r * t

Where:

- I is the interest earned

- P is the principal amount (the initial investment)

- r is the interest rate (as a decimal)

- t is the time period (in years)

In this case, Eric invested $10,000 at an interest rate of 8% for 6 years. So we can plug in these values:

I = 10,000 * 0.08 * 6

I = 4,800

The interest earned is $4,800. To find the total amount that Eric will receive after the 6 years, we need to add the interest to the principal:

Total = P + I

Total = 10,000 + 4,800

Total = 14,800

Therefore, Eric will receive $14,800 after the 6 years.

b) The total interest that Eric will earn is already calculated in part a) and it is $4,800.

User Harish Kayarohanam
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