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Answered

Determine how much simple interest you would earn on the following investment:
$13,400 invested at a 6 1/2% interest rate for 4 years.

Answer :

Jessmzhou4go

Answer: $3,484 (I hope this is the correct way to do it)

Step-by-step explanation:

The formula is: [tex]SI=\frac{PRT}{100}[/tex]

  • SI = simple interest  
  • P = principal amount = $13,400  
  • R = interest rate (in percentage) = [tex]6\frac{1}{2}[/tex]% = 6.5%  
  • T = time duration (in years) = 4 years

[tex]SI=\frac{13400*6.5*4}{100} =\frac{13400*26}{100} =\frac{348400}{100} =3484[/tex]

If you want to find the total amount, add the principle amount and the interest.

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