Question

Suppose a principal amount of $2079 was invested in a simple interests account that pays an annual rate of 2.31% then the amount of interests are and at the end of 14 years would be how much

Answer 1

The value of interest earned after 14 years = $ 672.34

The amount after 14 years = $ 2751.34

Explanation:

Principal amount = $ 2079

Rate of interest = 2.31 %

Time = 14 year

Now simple interest is given by

`SI = (PRT)/(100)`

Put all the values in above equation

`SI = ((2079)(2.31)(14))/(100)`

SI = $ 672.34

This is the value of interest earned after 14 years.

Amount After 14 years will be

A = 2079 + 672.34

A = $ 2751.34

This is the amount after 14 years.