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Maria invests $1,000 into an account at a yearly interest rate of 0.65% simple interest for 12 months. Calculate the interest earned on this account using the simple interest formula I=PRT

User Abuzeid
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Final answer:

To calculate the interest earned on an account using the simple interest formula, you need to use the formula I = PRT, where P is the principal amount, R is the interest rate, and T is the time in years. In this case, Maria invested $1,000 at a yearly interest rate of 0.65% for 12 months. Therefore, the interest earned on this account is $6.50.

Step-by-step explanation:

To calculate the interest earned on an account using the simple interest formula, you need to use the formula I = PRT, where:

  • I is the interest earned
  • P is the principal amount (initial investment)
  • R is the interest rate
  • T is the time in years

In this case, Maria invests $1,000 at a yearly interest rate of 0.65% for 12 months. Plugging in the values, we get:

I = $1,000 × 0.0065 × 1 = $6.50

Therefore, the interest earned on this account is $6.50.

User KumarA
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