Final answer:
The simple interest on $350 for 3 1/2 years at 8 percent per annum is calculated using the formula I = Principal × Rate × Time, which gives us $98 as the total simple interest earned.
Step-by-step explanation:
To find the simple interest on $350 for 3 1/2 years at 8 percent per annum (p.a.), you would use the formula for simple interest, which is Principal × Rate × Time. In this case, the principal (P) is $350, the rate (R) is 8% or 0.08 when converted to a decimal, and the time (T) is 3.5 years.
Calculating the simple interest, we get:
- P = $350
- R = 8% or 0.08
- T = 3.5 years
The simple interest (I) formula is:
I = P × R × T
Substituting the given values:
I = $350 × 0.08 × 3.5 = $98
Therefore, the simple interest earned is $98.
In comparison, the total future amount with simple interest would be the original amount plus the simple interest earned. For example, if you deposit $100 at a simple interest rate of 5% for three years, you would calculate $100 × 0.05 × 3 to find that the simple interest is $15, making the total future amount $115 (principal plus interest).