Question

Sandra deposited $2,500 into a simple interest account.

​She earned $ 75 in interest after 11 year.
​Ron deposited $8,000 into an account that has the same interest rate as Sandra’s account.
​How much money did Ron earn in interest after 11 year?
​Show your work.

Answer 1

240$

Explanation:

we know that

The simple interest formula is equal to

I=P(rt)

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

Sandra

t = 1 year

I= $75

P= $2,500

r= ?

substitute in the formula above

75=2,500 (r(1))

solve for r

r=75/2,500)

r= 0.03

Convert to percentage form

r= 0.03 * 100 = 3%

Ron

t=1 year

I = ?

P= 8,000

r= 0.03

substitute in the formula of interest

I = 8,000(0.03 *1)

I = $240