Question

Bianca invested $6,500 at an interest rate of 3%. How much will the simple interest be in 8 years?

Please help

Answer 1

$1,560

Steps:

To calculate simple interest, we use the formula:

Simple interest = Principal * Rate * Time

Given that Bianca invested $6,500 at a rate of 3%, the principal is $6,500 and the rate is 0.03 (since 3% is equivalent to 0.03 as a decimal).

We are asked to find the simple interest after 8 years, so the time is 8 years.

Using the formula, we get:

Simple interest = $6,500 * 0.03 * 8

Simple interest = $1,560

Therefore, the simple interest on Bianca's investment will be $1,560 after 8 years.