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Ben decided to invest his savings into a friends local business if he invests 1,750 at an annual interest rate of 6.4% how much interest will he earn in 4 years

1 Answer

6 votes

Answer:

He will earn an interest of $448 in 4 years

Explanation:

In this question, we are interested in calculating the interest earned on an investment for a period of 4 years.

To calculate this interest, we shall be using the formula for simple interest but with slight difference in terms definition

Mathematically;

I = PRT/100

Where ;

P is the amount invested which is $1,750 according to the question

R is the interest rate which is 6.4%

T is the time which is equal to 4 years

Plugging these figures, we have

I = (1,750 * 6.4 * 4)/100 = 44,800/100 = $448

User Garren S
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