Question

Find the simple interest earned

after 8 years in an account with a
principal of $5,000 and an annual
interest rate of 3%.

Answer 1

SI = $1,200 ; A = $6,200

Explanation:

First, converting R percent to r a decimal

r = R/100 = 3%/100 = 0.03 per year,

then, solving our equation

I = 5000 × 0.03 × 8 = 1200

I = $ 1,200.00

The simple interest accumulated

on a principal of $ 5,000.00

at a rate of 3% per year

for 8 years is $ 1,200.00.