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Jane received $875 from her graduation party. She put the money in the bank with a 4% simple interest rate. How much interest will she have earned after 7 years

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Final answer:

The high school mathematics question is about calculating simple interest earned after 7 years on $875 at a 4% rate. Using the simple interest formula (Interest = Principal × Rate × Time), we find that Jane will have earned $245 in interest.

Step-by-step explanation:

The subject of this question is Mathematics, and it is aimed at high school students.

The student wants to know how much interest Jane will have earned after 7 years with a starting amount of $875 and a simple interest rate of 4%. Let's break down the steps to calculate this.

Simple interest can be calculated using the formula I = PRT, where:

  • I stands for the interest earned
  • P stands for the principal amount (the initial amount of money)
  • R is the annual interest rate (in decimal form)
  • T is the time the money is invested or borrowed for, in years

Using the formula, Jane's interest after 7 years would be calculated as:

I = PRT = $875 × 0.04 × 7

Let's do the math:
I = $875 × 0.04 × 7

= $35 × 7

= $245

So, Jane will have earned $245 in simple interest after 7 years.

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