Question

NEED HELP ASAP: Abbi invested $1,000 in a certificate of deposit with a simple interest rate of 4%. Find the interest earned in 8 years. Then find the total of principal plus interest.

Answer 1

The 8 year Intrest is $320

Answer 2

Answer:

Therefore, Abby earned $320 in interest.

Abby earned a total amount of $1,320.

Step-by-step explanation:

We have been given that Abbi invested $1,000 in a certificate of deposit with a simple interest rate of 4%.

To find the amount of interest, we will use simple interest formula.

$I=Prt$, where,

I = Amount of interest,

P = Principal amount,

r = Annual interest rate in decimal form,

t = Time in years.

Let us convert our given interest rate in decimal form.

$4\%=\frac{4}{100}=0.04$

$I=\ 1,000*0.04*8$

$I=\ 1,000*0.32$

$I=\ 320$

Therefore, Abby earned $320 in interest.

To find the total of principal plus interest, we will add $320 to $1000 as:

$\text{Total amount}=\ 1,000+\ 320$

$\text{Total amount}=\ 1,320$

Therefore, Abby earned a total amount of $1,320.