Question

Calculate the amount of interest you'll have at the end of the indicated period. You invest $52,500 in an account that pays simple interest of 2% for 7 year(s). a) $15,000.00 b) $735.00 c) $3750.00 d) $7350.00

Answer 1

The amount of simple interest accumulated on a $52,500 investment at a 2% rate over 7 years is $7,350.00, which is calculated using the simple interest formula I = P × r × t.

Step-by-step explanation:

To calculate the amount of simple interest you'll have at the end of the indicated period, you can use the formula for simple interest which is Interest (I) = Principal (P) × Interest Rate (r) × Time (t). In this case, the principal is $52,500, the interest rate is 2% or 0.02 (as a decimal), and the time is 7 years.

Plugging in the values, the calculation for simple interest is as follows:

I = $52,500 × 0.02 × 7

Therefore, I = $52,500 × 0.02 × 7 = $52,500 × 0.14 = $7,350.00.

The correct answer is d) $7,350.00.

Answer 2

Using the simple interest formula (Interest = Principal × Rate × Time), the interest accrued on an investment of $52,500 at a rate of 2% over 7 years is $7,350.00.

Step-by-step explanation:

To calculate the amount of simple interest you'll have at the end of a given period, you can use the formula Interest = Principal × Rate × Time. In this case, the Principal (P) is $52,500, the Rate (r) is 2% or 0.02 as a decimal, and the Time (t) is 7 years. Plugging these values into the simple interest formula gives us:

Interest = $52,500 × 0.02 × 7

Interest = $1,050 × 7

Interest = $7,350.00

Therefore, the correct answer is d) $7,350.00.