Chapter 5.CR, Problem 1CR

Find the interest earned by a deposit of $\$8,140$ at $9\frac{3}{4}\%$ simple interest for eleven years.

To determine

To find:

The interest earned for the given condition.

Answer to Problem 1CR

Solution:

The interest earned for the given condition is $8730.15.

Explanation of Solution

Given:

The given condition is,

The amount $8140 deposit at $9\frac{3}{4}\%$ of simple interest for eleven years.

Formula used:

The simple interest I on a principal P at a interest rate r for t years is,

$I=\mathrm{Pr}t$

Calculation:

Consider the given condition,

The amount $8140 deposit at $9\frac{3}{4}\%$ of simple interest for eleven years.

Here, the given values are,

$P=8140$, $r=9\frac{3}{4}\%$ and $t=11$.

Now, apply the formula and substitute the above values.

$I=\left(8140\right)\left(9\frac{3}{4}\right)\left(11\right)$

Now, solve for I.

$\begin{array}{rll}I& =& \left(8140\right)\left(\frac{39}{4\cdot 100}\right)\left(11\right)\\ & =& \frac{3492060}{400}\\ & =& 8730.15\end{array}$

Therefore, the interest earned for the given condition is $8730.15.

Conclusion:

Thus, the interest earned for the given condition is $8730.15.