Question

Mr. Young is offered an investment opportunity. Kyra says she will invest his money at a 6% simple interest rate over the next 7 years. Mr. Young decides to invest $3000. How much interest will he have earned when the investment matures? *

Answer 1

$126

Explanation:

Given that:

Investment is done as per Simple interest.

Principal = $3000

Time for which the investment is to done = 7 years

Rate of interest = 6%

To find:

Interest earned when the investment matures?

Solution:

Formula for Simple Interest :

`Simple\ Interest = (PRT)/(100)`

Where
`P` is the principal amount

`R` is the Rate of Interest

`T` is the time for which the investment is made

Putting the given values:

`Simple\ Interest = (3000* 6* 7)/(100)\\\Rightarrow Simple\ Interest = (12600)/(100)\\Simple\ Interest = \$126`

Therefore, the answer is:

Interest earned is $126.