Question

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?

Answer 1

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.