Question

Maria invests $18,000 at 8% simple interest for 33 years.

Round your answers to the nearest cent.

How much interest is earned over the 33 year period?
$____
How much is in the account at the end of the 33 year period?
$___

Answer 1

interest earned = $3,960

total amount = $21, 960

Explanation:

Simple interest = Principle amount × Rate × Time.

Simple interest = $18,000 × 8 / 100 × 33 / 12

interest earned = $3,960

total amount = $18,000 + $3,960 = $21, 960