Answer:
$2,800
Explanation:
The formula for simple interest is I = PRT, where I is the interest (earned or paid), P is the principal amount invested/borrowed, R is the rate in decimal form, and T is the time in years.
I = (2000)(0.05)(8)
I = $800
Then we add that to the principal to get $2,800
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Joey made a deposit into an account that earns 6% simple interest. After 3 years, Joey earned $400. How much was Joey's initial deposit?
I = PRT
400 = P(0.06)(3)
400 = 0.18P
P = $2,222. 22
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Peter is calculating the interest earned on a deposit of $275 in an account that earns 8% simple interest after 12 years. What is the ??? guessing interest earned?
I = PRT
I = (275)(0.08)(12)
I = $264
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Neil's grandmother has left him a small inheritance of $6,000. Neil would like to invest it at a rate of 5% interest. What is the simple???
I = PRT
I = (6000)(0.05)(T)
Please let me know if you have questions, or want to fill in the missing information on questions 3 & 4.