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Charis invested $140

. She earned a simple interest of 3%
per year on the initial investment. If no money was added or removed from the investment, what was the amount of interest Charis received at the end of two years?

1 Answer

5 votes

Final answer:

Charis received $8.40 in simple interest at the end of two years by using the formula Interest = Principal × Rate × Time, with an initial investment of $140 at a 3% annual rate.

Step-by-step explanation:

To calculate the simple interest Charis received after two years, we use the simple interest formula, which is Interest = Principal × Rate × Time.

In this scenario, the principal is $140, the annual interest rate is 3%, and the time is 2 years.

Step 1: Convert the rate from a percentage to a decimal by dividing by 100, which is 0.03.

Step 2: Apply the simple interest formula:
Interest = $140 × 0.03 × 2 = $8.40.

Therefore, Charis received $8.40 in interest at the end of two years.

User Georgi Georgiev
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