Answer:
Interest = $1,752.75
Explanation:
The simple interest formula is given by:
S.I. = Prt, where:
- S.I. is the amount of interest earned in the acount,
- P is the principal/investment,
- r is the interest rate as a decimal,
- and t is the time in years.
Thus, we'll first need to convert 26 weeks to years.
Converting weeks to years:
Since there are 52 weeks in a year, we can determine how many years (x) is 26 weeks using a proportion:
26 weeks / x years = 52 weeks / 1 year
(26/x = 52) * x
(26 = 52x) / 52
0.5 = x
Thus, 26 weeks is the same as 0.5 years.
Finding the simple interest:
Now, we can find the simple interest by substituting 24600 for P, 0.1425 for r, and 0.5 for t in the simple interest formula:
S.I. = (24600)(0.1425)(0.5)
S.I.=(3505.5)(0.5)
S.I. = 1752.75
Therefore, the account earns $1,752.75 in interest, given an investment of $24600.00, an interest rate of 14.25%, and a period of twenty-six weeks.