Final answer:
To calculate the total interest earned on $83,500 at a rate of 4.003% over 6 years, you use the simple interest formula. The interest earned would be $20,055.03 after performing the multiplication with the given rate and time.
Step-by-step explanation:
The question is asking how much interest will be earned on $83,500 invested at a simple interest rate of 4.003% over a period of 6 years. To calculate the interest earned, you can use the simple interest formula:
Interest = Principal × Rate × Time
.In this case, the principal is $83,500, the rate is 0.04003 (4.003% expressed as a decimal), and the time is 6 years. Plugging these values into the formula:
Interest = $83,500 × 0.04003 × 6
.Multiply to find the interest:
Interest = $83,500 × 0.24018.
Performing the multiplication gives:
Interest = $20,055.03
Therefore, the total interest earned over 6 years at 4.003% would be $20,055.03.