Question

Carter invested $800 in a savings bond that pays simple interest according to the formula below.

1 = Prt
In the formula, / represents interest, P represents the money invested, or principal amount, ris the
simple interest rate, and t represents the time, in years, that the money is invested.
If the savings bond pays 4% interest, how much interest will Carter earn after 9 years?

Answer 1

$ 7488

Explanation:

The formula indicates that they should all be multiplied together.

In this case interest,r, is 4% where it is 1.04 and t = 9 and P is the initial amount which is 800.

Multiplying them altogether will give out the answer.

Hope this helps.