Question

Interest.

Charlie invests $325 in an account that pays 8% simple interest for 15 years.
Use the simple interest formula, I =P rt, to answer the following questions,
How much interest will Charlie's initial investment eam over the 15-year period?
How much money does Charlie have after the 15 years?

Answer 1

Interest: $390 | Total: $715

Explanation:

To answer the first question, we can use the simple interest formula provided:

`I=Prt`

P = initial balance

r = annual interest rate

t = time

First, change 8% into the decimal form:

8% ->
`(8)/(100)` -> 0.08

Now, plug in the values:

`I=325(0.08)(15)`

`I=390`

Charlie made $390 of interest. To find the total, just add that number to $325.

`390+325=715`

Charlie's total money made was $715.