If you invest $7392 in an account that pays simple interest of 30% How much interest will you have earned after 5 years?
If you invest $7392 in an account that pays simple interest of 30% How much interest will you have earned after 5 years?
Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter7: Percents
Section: Chapter Questions
Problem 48CR
Related questions
Question
![**Simple Interest Calculation**
*Problem Statement:*
If you invest $7392 in an account that pays simple interest of 3% How much interest will you have earned after 5 years?
*[Input Field]*
---
**Explanation of Simple Interest:**
Simple Interest can be calculated using the formula:
\[ \text{Simple Interest} = P \times r \times t \]
Where:
- \( P \) is the principal amount ($7392)
- \( r \) is the annual interest rate (3% or 0.03)
- \( t \) is the time the money is invested for (5 years)
---
**Calculation Example:**
Using the given problem:
\[ \text{Simple Interest} = 7392 \times 0.03 \times 5 \]
\[ \text{Simple Interest} = \$1108.80 \]
After 5 years, you will have earned $1108.80 in interest.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F308ceb38-0706-4842-834f-0067ef9276f7%2Ff964d8fd-ef0b-4fc0-b407-6118ff81b336%2Fpax46s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Simple Interest Calculation**
*Problem Statement:*
If you invest $7392 in an account that pays simple interest of 3% How much interest will you have earned after 5 years?
*[Input Field]*
---
**Explanation of Simple Interest:**
Simple Interest can be calculated using the formula:
\[ \text{Simple Interest} = P \times r \times t \]
Where:
- \( P \) is the principal amount ($7392)
- \( r \) is the annual interest rate (3% or 0.03)
- \( t \) is the time the money is invested for (5 years)
---
**Calculation Example:**
Using the given problem:
\[ \text{Simple Interest} = 7392 \times 0.03 \times 5 \]
\[ \text{Simple Interest} = \$1108.80 \]
After 5 years, you will have earned $1108.80 in interest.
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