Question

Find the simple interest earned on $650 invested at 3 1/2% for 10 years

Answer 1

$227.50

Explanation:

Lets use a modified simple interest formula to solve:

`I=Prt`

P = initial balance

r = annual interest rate

t = time

First, lets change 3.5% into a decimal:

3.5% ->
`(3.5)/(100)` -> 0.035

Now, plug in the values:

`I=650(0.035)(10)`

`I=227.50`

The simple interest earned after 10 years is $227.50